Token Description & Project Background

Audius is a blockchain-based music streaming platform that aims to give anyone the ability to distribute, monetize, and stream audio content in a fully decentralized manner.

the protocol allows artists to directly monetize and engage with their audiences. This is done through paid content and the distribution of bespoke “artist tokens.” A decentralized network of computer operators (collectively referred to as “Content Nodes”) are responsible for relaying audio streams to the broader Audius network; the content nodes can be operated by artists themselves for a greater degree of control, the platform’s creators said.

AUDIO is the platform’s native token, and is used for governance and as a staking reward. The token was launched via airdrop in October of 2020.  

The project was co-founded by Roneil Rumberg, Sid Sethk and Hareesh Nagaraj.

Risks of AUDIO

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

• Any potential success associated with AUDIO is dependent on the Audius platform’s rate of adoption by artists and listeners. This space faces some competition, as a number of blockchain projects seeking to cater to, and capitalize on, similar fan economies have emerged since Audius’ inception in 2020.

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

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 14, 2023.