Crypto Asset Statement: SC
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Written by Customer Care Team
Updated over a week ago

Crypto Asset Statement: SC (Siacoin)

Last updated: April 25, 2023

About this Statement

CatalX CTS (“Catalyx” or “we”) strives to provide our users with information to assist in understanding crypto assets that are offered for trading on the Catalyx platform (the “Platform”). One of the crypto assets we offer on the Platform is SC (Siacoin) This summary sets out certain key information about Siacoin and SC as well as some of the risks involved in trading SC. While we tried to describe the key features of SC here, this summary doesn’t provide all relevant information on SC. We encourage users to perform their own research in order to understand any crypto asset that they intend to trade on the Platform.

About Siacoin

Launched in 2015, the Sia network is a decentralized cloud storage platform. It was started by Luke Champine and David Vorick at HackMIT in 2013 and later released as a product of Nebulous, Inc., a corporation established by Champine and Vorick. Unlike other cloud storage platforms, users of the Sia network rent storage from one another instead of a centralized provider. Renters who need space upload their files to the Sia network, where hosts offer their spare hard drive space. The network records contracts between renters and hosts.

Security on the network is facilitated by giving renter’s private storage keys, requiring hosts to prove their storage capabilities, and having renters’ files stored across several nodes in the Siacoin network so that no single node can access all of the files, even with the private key.

The Sia Foundation is a non-profit organization created to support and promote the Sia network and it provides grants to developers to improve the network ecosystem. The Sia Foundation is funded by an ongoing block subsidy of 30,000 SC per new block generated. Development of the network is also maintained by a core team of developers.

What is SC?

SC is the native crypto currency used on the Siacoin network. SC is used as a currency to facilitate transactions on the network. Renters pay for storage space using SC and hosts put up SC as collateral in relation to their contractual commitments. Hosts are required to periodically provide proof of storage of the renter’s files in order to be paid. Each time proof is provided on time, the host received payment in SC and failure to do so results in penalties. SC are also earned by miners as block rewards when generating blocks on the Sia network.

There is an unlimited supply of SC on the network and they are generated through mining. There was no ICO for Siacoin. The Siacoin development team pre-mined less than 0.1% of the total SC supply at the time the network launched and they continue to hold less than 0.1% of the total SC in supply.


This overview provides a summary of certain risks associated with SC. We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading SC, and in addition, does not take into account an individual’s particular situation or risk tolerance. Purchasers are encouraged to conduct their own research prior to trading any crypto asset on the Platform. Catalyx users should read the Risk Disclosure Statement for additional discussion of general risks associated with crypto assets made available through the Catalyx platform. 

Dependence on Developers. The future success of the Siacoin is likely somewhat dependent on the ongoing participation in network development by developers and the Sia Foundatoin. If these entities cease their support for the network such actions may be detrimental to the project going forward.

Adoption. Siacoin was built for the purpose of facilitating cloud data storage between users. The future value of the SC token will be based on some degree on the adoption of its technology by individuals and entities looking to use the Siacoin model of cloud storage platform, since SC is required on the network to engage in transactions. Failure of the Siacoin protocol to obtain satisfactory levels of adoption could be detrimental the value of the SC token.

Please note that these risks and the associated summaries or overviews provided for each in the Risk Disclosure Statement are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to SC.  We encourage all Catalyx users to perform their own due diligence to assess the risks associated with SC and to determine whether this level of risk is acceptable to them. 

How Catalyx determines which Crypto Assets to List

Catalyx has established robust policies and procedures to review each crypto asset offered for trading on the Platform. Among other information, we review available public information relating to the crypto asset on the following topics prior to making a determination on whether a crypto asset will be listed:

  • The history and characteristics of the crypto asset including whether the crypto asset was launched by ICO;

  • Analysis of the founders or inventors of the crypto asset/related network and a review of their ongoing involvement with crypto asset/network;

  • How the crypto asset functions including a review of its utility or purpose;

  • The market liquidity for the crypto asset;

  • The current and proposed governance of the ecosystem on which crypto asset operates with a focus on the level of decentralization of such ecosystem; and

  • The position taken by any regulator with respect to the crypto asset including any enforcement action taken against the crypto asset, the related network, or the founders.

In addition to the above we also conduct an analysis of factors weighing in favor or against the crypto asset being deemed to be a security based on Canadian securities laws.

Regulatory Information

No securities regulatory authority in Canada has expressed an opinion about SC or any of the other crypto contracts or crypto assets made available through the Platform, including an opinion that SC itself is not a security and/or derivative.  Changes to applicable law may adversely affect the use, transfer, exchange, or value of any crypto contracts or crypto assets you hold on the Platform.

Certain statutory rights under securities legislation in Canada do not apply in respect of this Crypto Asset Statement.

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