Token Description & Project Background

Bitcoin Cash was ‘hard forked’ from the Bitcoin core code in August 2017 by a group of cryptocurrency miners and enthusiasts who were concerned about how slow Bitcoin was progressing. 

Their new code design increased the size of the ‘blocks’ that form the blockchain from approximately 1MB per block to 8MB per block. This meant that more information could be processed at the same time, effectively speeding up the network. 

It is an open source, open ecosystem to which anyone can contribute and it is not administered by any specific organization.

Risks of BCH

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

• BCH mining is energy-intensive and its transaction speed is slower than more recent alternatives. Users considering investing in BCH should be aware of broader trends in favor of energy-efficient and high-throughput blockchain applications.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with BCH . 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 BCH community is not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of BCH have no recourse to the BCH community or Uphold if BCH 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 BCH on the Uphold Platform, Uphold performed due diligence on BCH and determined that BCH 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 BCH, including ensuring the source code being open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of BCH
• Marketing materials put forward by the BCH social team including, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with BCH, including any code defects, security breaches and other threats concerning BCH 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 BCH, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BCH. 

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 5, 2023.