Token Description & Project Background

Kadena is a layer one PoW blockchain protocol designed for scalability and security. It is smart contract compatible using Pact, the first human readable smart contract language, that offers high throughput without the need for layer two solutions. 

The project was founded by Will Martino (CEO) & Stuart Popejoy (President) in 2016.

They also offer Kadena Kubo, a Byzantine Fault Tolerant private blockchain optimized for enterprise-grade use cases. 

KDA functions as a ‘gas’ token within the network and is used to compensate miners for validating blocks.  The token was first released to the public via a November 2019 token sale on launchpad platform CoinList.

Risks of KDA

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

• The Layer-1 space is intensively competitive, with many blockchains claiming to offer the highest transaction speeds, security levels, and greatest cost effectiveness. Any potential success associated with KDA will rely on the extent of Kadena’s adoption by projects and developers. 

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

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.