DEGEN Describes Itself As

DEGEN initially launched as a meme coin in January 2024, an ERC-20 token used primarily within the Farcaster Degen channel to reward active participants. Recently, DEGEN has expanded its utility and launched the DEGEN Chain, an Arbitrum Orbit chain that settles on Base and utilizes AnyTrust for data availability, with DEGEN as its native gas token.

Project Utility/Function

DEGEN’s journey from a meme coin to a community token illustrates its growing influence and utility. Initially, DEGEN served as a reward mechanism, airdropping 15% of its total supply to active members of the Farcaster Degen channel. The project plans to airdrop a total of 70% of the token's supply, reinforcing its community-centric approach.

The launch of DEGEN Chain aims to further integrate DEGEN into the Base ecosystem, providing a platform for developers to build applications using DEGEN as the native token. This transition marks a significant shift, positioning DEGEN as a foundational element for decentralized applications within the memecoin community.

Token/Token Utility

The tokenomics of DEGEN draw comparisons to Blur (BLUR) and Uniswap (UNI) tokens. Users earn DEGEN tokens by engaging in the community, receiving likes, comments, or holding specific NFTs. One point in the system equals one DEGEN token, which are distributed through airdrops, incentivizing active participation and content creation.

About the Founders

Jacek Trociński is the creator behind DEGEN Chain. Trociński's vision was to create a token with robust utility and a supportive community foundation, similar to successful tokens like BLUR and UNI. 

Risks of DEGEN

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

• Any potential success associated with DEGEN is reliant on the extent to which the Degen Chain is adopted, as well as the growth of its decentralized community, and their continued trading and enthusiasm for the asset. These factors are difficult to predict, and could result in very high volatility.

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

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 18, 2024.