Aptos Network Describes Itself As

Aptos is a Layer 1 Proof-of-Stake (PoS) blockchain that leverages a unique smart contract programming language called Move. This language was independently developed by engineers from Meta’s Diem blockchain project. Aptos aims to bring mainstream adoption to Web3 and support a diverse ecosystem of decentralized applications (DApps) to solve real-world problems. The blockchain boasts a theoretical transaction throughput of over 150,000 transactions per second (tps) through its parallel execution capabilities.

Project Utility/Function 

Aptos is designed to enhance blockchain performance and user experience through innovative technology and infrastructure. Key features include:

• High Throughput: Utilizing a parallel execution engine (Block-STM), Aptos can theoretically support over 150,000 tps, vastly outpacing Ethereum's 12-15 tps.
• Consensus Mechanisms: The blockchain uses a hybrid of Proof-of-Stake and a Byzantine Fault-Tolerant consensus protocol, AptosBFT, ensuring reliability even when some network members are compromised.
• Smart Contract Programming: The Move language offers advantages over Solidity, including enhanced security, verifiable commands, and modular design.
• Scalability: Aptos's design includes sharding for horizontal scalability, allowing the network to handle increased loads seamlessly.

Token Utility 

Aptos employs its native APT token for various functionalities within its ecosystem:

• Transaction Fees: The token is used to pay transaction fees on the network.
• Staking and Governance: Token holders can participate in staking to secure the network and in governance to vote on key proposals.
• Incentivization: Tokens are distributed to incentivize developers, node operators, and auditors, particularly through initiatives like the Aptos Incentivized Testnet (AIT).

About the Founders 

Aptos was co-founded by Mo Shaikh and Avery Ching, both former employees of Meta.

• Mo Shaikh: Serving as the CEO, Shaikh brings extensive experience in multinational financial services, blockchain, and cryptocurrency. His background includes scaling products and working in private equity and venture capital markets.
• Avery Ching: The CTO of Aptos, Ching was a principal software engineer at Meta and played a significant role in the Diem project. He has deep expertise in software engineering and blockchain technologies.

The Aptos team includes a diverse group of researchers, designers, and engineers, many of whom were involved in the Diem project. This team has been pivotal in transitioning from the Diem blockchain’s concepts to the Aptos platform.

Funding and Development 

Aptos has successfully raised significant capital to support its development:

• March 2022: $200 million seed round led by Andreessen Horowitz, with participation from Tiger Global and Multicoin Capital.
• July 2022: Another $200 million raised in a Series A round with participants including Dragonfly, Apollo Global, Franklin Templeton, Animoca, and Jump Crypto.
• September 2022: Strategic investment from Binance Labs.

Risks of APT

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

• The Layer-1 space is intensely competitive. Several new blockchains continue to emerge which boast high-profile teams, claim unparalleled transaction speed, energy-efficiency, as well as developer-friendly programming languages. Any potential success associated with APT is reliant on the extent to which Aptos is adopted by enterprises and developers.

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

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 July 22, 2024.