Token Description & Project Background

Aavegotchi is an Ethereum-based game in which users collect and trade digital pets in the form of non-fungible tokens (NFTs). These pet NFTs, called Aavegotchis, are "playable" and, per hackmd.io, act as "interest-generating piggy banks” into which DeFi tokens can be directly staked. The characters have pixelated ghost appearances similar to the Aave logo. 

GHST is the game’s native currency, used as a means of payment for in-game items and also for governance. Additionally, the token can be staked for additional rewards including parcels of digital land.

Drawing the first part of its moniker from the popular lending protocol, Aaave (AAVE), each unique Aavegotchi is backed with yield bearing aTokens (known in-game as ‘Spirit Force’) that accrue rewards in AAVE-backed lending pools.

Players actively work to enhance the rarity and features of their digital Aavegotchis. Additional GHST is dished out through this process, referred to as rarity farming.

In late March 2022, the protocol released their own open-world game called “The Gotchiverse,” touted as a unique take on the metaverse that allows players “to explore, battle, craft exclusive NFTs, and play-to-earn via their Aavegotchis.”

Aavegotchi is based in Singapore and the DAO was started by one-known and one pseudonymous founder: Jesse Johnson and Coder Dan respectively. PixelCraft Studios is the private company that receives benefits for development.

Risks of GHST 

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

• Any potential success associated with GHST is dependent on its rate of adoption by users. Investors should be aware that there are a number of competing blockchain gaming projects in the market.
• Any potential success associated with GHST is dependent on a number of external factors, such as the growth and increased adoption of the metaverse economy, and the continued popularity of NFTs as digital collectibles.

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

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 12, 2023.