Token Description & Project Background

The Ethereum Name Service is a distributed naming system that maps human-readable names to complex strings of data like crypto wallet addresses and content hashes.

The platform is positioned as Web3’s equivalent to Web2’s Domain Name System (DNS). Similar to how DNS allows simple URLs to represent complex IP addresses; the Ethereum Name Service attributes human readable nicknames to confusing and over complicated wallet addresses.  

Built on Ethereum, the Ethereum Name Service consists of two unique smart contracts: a registry, responsible for storing individual domain names, and a resolver contract used to translate domain names into machine-readable data (and vice versa). 

ENS is the Ethereum Name Service’s native governance token. ENS is used to confer voting rights within the ENS DAO. 

One of Ethereum’s first NFT projects, ENS was created by two Ethereum Foundation (EF) developers, Nick Johnson and Alex Van de Sande, in May of 2017.

ENS was initially distributed to over 137,000 eligible wallet addresses in November of 2021.

Risks of ENS

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

• Any potential success associated with ENS is dependent on the Ethereum Name Service’s rate of adoption, as well as the continued security offered by the Ethereum blockchain it is built on.

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

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.