Token Description & Project Background

Qredo is a cross-chain L2 Network with consensus-driven computation (CD-MPC) for digital asset tracking, settlement, and a secure end-to-end encrypted decentralized communication network.

By leveraging a layer-2 framework, Qredo is able to confirm transactions –including interoperable atomic swaps between layer-1 assets and crypto to fiat trades – instantaneously, and without counterparty risk. On top of this layer-2 Qredo has managed to build an aptly named “layer-3 protocol” used to enable network-wide communication and provide enterprise-grade audit trails.

Compliance and governance controls are built into the consensus mechanism. 

QRDO functions similarly to other Tendermint DPoS assets in that it rewards users for staking and validating the network and is used to cover transaction fees. 

The project is moving towards a fully decentralized governance model where holders will form the Qredo DAO and govern protocol parameters and the distribution of treasury funds.

QRDO was launched in July 2021.

The project was founded by Anthony Foy (CEO) and Brian Spector (Chief Product and Technology Officer) in 2018. Foy joined Qredo following a 20-year career working for Workshare and SkyDox.

Risks of QRDO

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

• Any potential success associated with QRDO is dependent on Qredo’s rate of adoption.

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

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 19, 2023.