Token Description & Project Background

Algorand is a layer-one, proof-of-stake (PoS) blockchain.

Algorand and its native token, ALGO, launched in 2019. ALGO is used to secure the platform and reward the ecosystem's governors.

It bills itself as a scaleable, enterprise-grade blockchain focussed on solving real-world use-cases for both large organizations and ‘everyday people’. 

Algorand claims to have unrivaled point-of-sale transaction speed and industry-leading uptime. 

Marketing materials also position Algorand as a particularly developer-friendly blockchain - Algorand offers 24-hour ‘concierge-style’ developer support, and claims developers can build their first dApp (decentralized application) in under ten minutes using the AlgoKit.

Algorand was created by Silvio Micali, a recipient of the Turing Award in computer science and a long-standing faculty member of MIT’s Electrical Engineering and Computer Science department. 

The Algorand whitepaper was published in 2017, and co-written by Silvio Micali and Jing Chen. Chen is a member of Stony Brook’s Computer Science department.

Risks of ALGO

Like an investment in other crypto assets, there are some general risks to investing in ALGO. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in ALGO is subject to the following specific risks:

• The Layer-1 space faces intense competition. Any potential success associated with ALGO depends on Algorand’s continued rate of adoption by developers and enterprises.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with ALGO. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The ALGO community, Algorand Foundation, and Algorand founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of ALGO have no recourse to the ALGO community, Algorand Foundation, Algorand founding team, or Uphold if ALGO declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing ALGO on the Uphold Platform, Uphold performed due diligence on ALGO and determined that ALGO is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of ALGO, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of ALGO.
• Any marketing materials put forward by the ALGO social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with ALGO, including any code defects, security breaches and other threats concerning ALGO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with ALGO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ALGO. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.