Token Description & Project Background

Filecoin is a decentralized storage network developed by Protocol Labs in 2014 by Juan Benet. Juan received his BS and MS in Computer Science from Stanford University, graduating in 2012.

Protocol Labs is known for its efforts to rewrite basic internet protocols, creating technologies like Interplanetary File Storage (IPFS), a web-address-protocol alternative to "http://" and on which FIL is based. 

Filecoin uses cryptographic proofs to verify the quantities and types of files on the network, transparently, helping to ensure files maintain integrity, while ensuring file storage is permanent and distributed across the web. 

Filecoin’s cryptocurrency, FIL, is the network’s native token. It is used to pay all on-chain transactions.

FIL went live on the mainnet in mid-October 2020.

Risks of FIL

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

• Any potential success associated with FIL is dependent on Filecoin’s rate of adoption. It faces competition with existing and established centralized storage providers such as Amazon, Microsoft or Google.

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

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 9, 2023.