Token Description & Project Background

Livepeer is an open-source infrastructure platform for decentralized video streaming that operates on the Ethereum blockchain.  

Powered by a decentralized network of token-holding node operators, Livepeer claims to support both traditional and Web3-based video streaming at costs up to 50 times less than competing cloud service providers.

Within the Livepeer ecosystem, ownership of a native digital asset, LPT, is required to perform work like transcoding and distributing video.

LPT is also used to facilitate governance across the protocol and is the means through which Liveepeer distributes tokenized rewards.

The protocol relies on a series of “orchestrators” to provide the decentralized bandwidth needed to provide video transcoding – a process which entails decoding, reformatting, and recoding files, as well as distribution services on the network.

Orchestrators are rewarded for their work with crypto or fiat-backed stablecoins, project documentation explained. Under this framework, delegators can stake their tokens towards high-performing orchestrators for a cut of their rewards.

Livepeer was founded in 2017 by Doug Petkanics (Co-Founder & CEO), Eric Tang (Co-Founder & CTO).

Risks of LPT

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

• Livepeer faces competition from other decentralized video streaming projects. Any potential success associated with LPT depends on Livepeer’s rate of adoption.

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

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 21, 2023.