Token Description & Project Background

Hedera is a proof of stake, smart contract-powered public network, powered by hashgraph consensus. This supposedly enables it to achieve a high security grade (aBFT) with lightning fast transaction speeds, low fees, near-instant finality, and low bandwidth consumption.

The network aims to create a sustainable alternative to blockchain-based technology that is both fast and secure, ending the so-called blockchain “trilemma” (speed, security, decentralization). 

Hedera Hashgraph was founded as a private Company, Swirlds, by Leemon Baird and Mance Harmon in 2015.

Hedera spun out of Swirlds, which was renamed Hedera Hashgraph, to develop and govern a live network, Hedera, using its technology.

HBAR is the network’s native token serving as both network fuel and a means for securing the network. 

Risks of HBAR

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

• The Layer-1 space faces intense competition. Hedera is one of many infrastructure providers which seeks to appeal to big corporations, and is not unique in claiming to offer unparalleled transaction speeds, high security, and a fully decentralized platform.

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

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.