Token Description & Project Background

Orchid (OXT) was launched in December 2019 as the first peer-to-peer network for matching incentivized VPN-like service providers with online-privacy-seeking users. It bills itself as the first blockchain VPN solution.

The network comprises the Orchid app, the Orchid VPN client that runs in the app, and the Orchid digital currency, OXT.

OXT is Orchid's native ERC-20 token: it powers and secures the network. Providers compete for user payment flow by staking OXT. Node providers can add and stake OXT in order to capture additional bandwidth sales on the Orchid network.

Orchid was developed by Orchid Labs, a private company, in 2017 by Brian Fox, Gustab Simonsson, Jay Freeman, Stephen Bell, and Steven Waterhouse. 

Waterhouse gained a PhD in Computer Science and Engineering from the University of Cambridge and was a partner at the digital currency investment fund Pantera Capital and a board member at Bitstamp.

Freeman helped develop the Cydia software distribution platform, whilst Fox created the GNU Bash shell and command language and built the first interactive online banking software in the US for Wells Fargo. Simonsson is an engineer and developer who helped launch Ethereum.

Risks of OXT

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

• Any potential success associated with the OXT token is reliant in Orchid’s rate of adoption and the growth in demand for VPN services.

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

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.