Token Description & Project Background

Ordinals Protocol enables users to inscribe references to digital art, text, and images onto Satoshis, the lowest denomination of a Bitcoin.Ordinals (ORDI) is a cryptocurrency that runs on the Bitcoin network and presents information such as text and images as NFTs and tokens. 

ORDI is the the first cryptocurrency developed in the BRC-20 format on the Bitcoin network. BRC-20 tokens are minted and deployed on the Bitcoin network –  they are akin to ERC-20, however, they do not have programmable functionality given they are not smart-contract based. 

ORDI was developed by pseudonymous ‘domo’ with a Twitter handle @domodata.

Risks of ORDI

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

• Any potential success associated with ORDI depends on Ordinals’ rate of adoption by users, as well as the continued demand for NFTs and the growth of the NFT economy. ORDI is an experimental token with no further roadmap or development outlined by initial creator. 

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

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.