Story Describes Itself As

A Layer-1 (L1) EVM-compatible Proof of Stake (PoS) blockchain developed via the Cosmos SDK that allows users to register intellectual property (IP) on the network via the protocol’s Proof of Creativity (PoC) consensus mechanism.

Project Function

Proof of Creativity (PoC) consensus mechanism allows users to create IP Assets (IPAs) which represent registered IPs of various content such as NFTs, audio files, document images, etc. The PoC consensus mechanism is in charge of on-chain processes for IPAs such as licensing, automating royalty payments, and disputes. A license (IPA) is an ERC-721 NFT meanwhile payments are distributed to a user’s wallet as ERC-20 tokens.

Token Utility 

IP is the network’s native token used to stake to support the network as a validator node, delegate tokens to existing validators, pay for transactions/gas fees, governance, and rewards to stakers and delegators.

About The Founders

Seung Yoon “SY” Lee is the Co-founder and CEO of Story Protocol; previously served as Global Strategy Officer at Kakao Entertainment, a leading Korean content & IP company​. Seung also was the Founder and CEO of Radish, a mobile serialized fiction platform with millions of users, which he led to a successful exit – Radish was acquired by Kakao Entertainment for $440 million in 2021. (Linkedin)

Jason Zhao is the Co-founder of Story Protocol and Head of Protocol. Previously a Product Manager at Google DeepMind, where he focused on turning cutting-edge AI research into practical, real-world applications. (Linkedin)

Jason Levy is the Co-Founder and previous COO of Story protocol. Previously served as Director of Episode Originals at the popular mobile storytelling platform, where he led the development of interactive story products and managed partnerships with major entertainment studios. Jason also established a mobile media startup in 2018 focused on immersive storytelling experiences, overseeing strategy, product development, and content creation for the platform. (Linkedin)

Risks of IP

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

• IP operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

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

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 April 8, 2025.