Token Description & Project Background

Built as a competitor to third-party oracle services, API3’s data feeds are made up of first party oracles operated by independent API providers. The platform’s Airnode protocol lets decentralized applications connect to web-based APIs, enabling web3 services to access the latest stock/crypto/asset prices and any other pertinent data. 

API3 is the project’s native currency. It serves as a governance token and as a means of rewarding API providers in exchange for error-free data. The token grants holders voting rights in the API3 DAO, an autonomous and decentralized organization which manages protocol governance.

API3 was founded in 2020 by Heikki Vanttinen, Burak Benligiray, and Saša Milić.

Risks of API3

Like an investment in other crypto assets, there are some general risks to investing in API3. 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 API3 is subject to the following specific risks:

• The data oracle space is competitive. Any potential success associated with the API3 token depends on API3’s rate of adoption by decentralized applications.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with API3. 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 API3 community and API3 DAO are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of API3 have no recourse to the API3 community, API3 Dao, or Uphold if API3 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 API3 on the Uphold Platform, Uphold performed due diligence on API3 and determined that API3 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 API3, 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 API3.
• Any marketing materials put forward by the API3 social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with API3, including any code defects, security breaches and other threats concerning API3 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 API3, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of API3. 

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 15, 2023.