POPCAT Crypto Asset Statement

What is POPCAT?

Popcat ($POPCAT) is a meme coin on the Solana blockchain that has gained significant attention in the cryptocurrency market. Regarded as the "Dogecoin killer," POPCAT was inspired by the viral POPCAT meme featuring the cat Oatmeal. It allows the token holders to play and earn rewards, with a unique reward system that allocates 12% of each transaction back to holders. Users typically purchase POPCAT to engage with the meme and participate in community events, voting, or fun competitions within the meme ecosystem. POPCAT capitalizes on the power of meme culture and community engagement within the crypto space. Its value is primarily driven by speculation and online trends, which positions POPCAT as a medium of exchange within the meme coin ecosystem.

Who is behind POPCAT?

The clicking game POPCAT was co-founded by computer science students Joshua O'Sullivan, Edward Halis, and Freddy Heppell from the University of Sheffield. This initial concept laid the groundwork for Zach as the co-founder and Akito as the CEO in establishing the POPCAT token, bridging the gap between a simple game and the cryptocurrency ecosystem. The team aims to enhance fun and community engagement in the blockchain space through this project while also providing tangible utility for its users. Overall, the POPCAT development team has built a strong reputation for engagement and innovation in the evolving landscape of meme coins and blockchain gaming.

How does POPCAT work?

POPCAT operates as a decentralized token on the Solana blockchain, utilizing smart contracts to facilitate transactions and rewards. It sets itself apart by offering a community-driven model that utilizes decentralized architecture to give users full control. As a meme coin within the Solana ecosystem, traders can buy, sell, and hold POPCAT as a store of digital value. All transactions of POPCAT are recorded on a decentralized public ledger and verified utilizing the Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms.

One of the standout features of POPCAT is its innovative reward mechanism, which redistributes 12% of transaction fees back to token holders. This strategy not only incentivizes users to trade for more stakes but also fosters a sense of community ownership and involvement. By participating in transactions and the game, users can benefit from their engagement within the ecosystem.

History of POPCAT  

Much like other meme coin predecessors, POPCAT originated from the internet’s culture of humor and virality. The coin is based on the Popcat meme, featuring a cat with a quirky, animated mouth. This simple yet captivating meme quickly gained public traction on social media platforms like Twitter, Reddit, and TikTok, and became a staple in meme culture. Recognizing the potential to leverage the viral sensation, the project development team created a cryptocurrency that embodied the spirit of the meme within the Solana ecosystem. The coin has connected individuals who may not have otherwise engaged with cryptocurrency, creating a strong sense of community and shared identity. Looking ahead, the prospects of the POPCAT community engagement appear promising due to active events and the ongoing popularity of meme culture in the crypto space. By October 2024, POPCAT achieved a remarkable market cap of $1.35 billion and was positioned as the seventh largest meme coin.

The POPCAT Token and Tokenomics

The POPCAT token has a total supply of 979,974,293 $POPCAT. Its allocation is structured to promote liquidity and future growth, with 93.1% dedicated to the liquidity pool to ensure ample room for trading. The remaining 6.9% is stored in a multi-sig wallet designated for future developments, such as potential centralized exchange listings, bridges, and liquidity pool enhancements for the ecosystem.

Drawbacks and Risks

Investing in POPCAT carries several risks, particularly due to its nature as a meme coin. There is a lack of intrinsic value for POPCAT, as its worth is largely driven by speculation and community engagement rather than any underlying utility. Additionally, meme coins like POPCAT are inherently volatile; while this volatility can lead to significant gains, it also poses substantial risks. Traders may face severe losses if market sentiment shifts abruptly, as the speculative nature of meme coins makes them susceptible to factors such as social media trends and celebrity endorsements, resulting in unpredictable price movements.

Moreover, the rise of meme coins has attracted regulatory attention worldwide. Concerns about market manipulation, fraud, and investor protection have led to calls for increased regulation. POPCAT, like other cryptocurrencies, may face regulatory challenges that could impact its future. Additional risks inherent in this meme coin include the absence of the formal white paper, which obscures the project's technical specifications, governance structure, and long-term roadmap. There may be insufficient disclosure of potential vulnerabilities or limitations within the protocol, thereby increasing risks for both traders and platform users.

Due Diligence

Before listing POPCAT on the VirgoCX Platform, VirgoCX performed due diligence on POPCAT and determined that POPCAT is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following: 

• The creation, governance, and location of POPCAT and/or its primary development team;
• The supply, demand, maturity and liquidity of POPCAT; and
• Legal and regulatory risks associated with POPCAT.

Statutory Rights under Securities Legislation

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2024 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Further Reading

To learn more about the technology behind POPCAT, check out these in-depth resources here:

• The official site of  POPCAT
• Coinmarketcap’s overview of POPCAT
• Coingecko’s overview of POPCAT
• Coinbase’s overview of POPCAT