Token Description & Project Background

Numbers Protocol provides a decentralized photo network for Web 3. The project aims to bring integrity and authenticity to the digital content space by creating a decentralized photo network where assets are both traceable and verifiable through its Capture, Seal & Trace process. 

According to Number’s whitepaper, the protocol’s decentralized image network leverages both Web3 and ledger-based technologies to store and authenticate digital photos and videos.

The network itself comprises two key components, those being network operators and the data library, which work in tandem to ensure operational efficiency.

Network operators encompass both storage suppliers and validators who actively ensure the integrity of images registered on the platform. For their efforts, network operators are provided NUM-based rewards.

Numbers’ data library comprises a series of key technologies including IPFS and Filecoin integration for content and metadata storage, a distributed ledger for saving immutable integrity records and platform native NFTs to record image/video ownership.

NUM is the network’s utility token. It can be used to transact within the network, buy, gift, and register copyright. Users can also provide liquidity to the network through staking and earn rewards.

$NUM launched in November 2021. 

Numbers Protocol is a Taiwan start-up founded in 2019. It was founded by Bofu Chen, Tammy Yang, and Sofia Yan.  

Risks of NUM

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

• Any potential success associated with NUM is dependent on Numbers Protocol’s rate of adoption by users and creative content creators.

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

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 14, 2023.