Token Description & Project Background

SHIB is an Ethereum-based token which can be used for payments, and serves as the Shiba Inu community coin. Like DOGE, SHIB is widely referred to as a ‘memecoin’. Its aesthetic was inspired by Dogecoin, and its mascot also features a Shiba Inu dog.

SHIB was launched in 2020 by an anonymous developer known only as Ryoshi.

In its “Woof Paper” (a play on ‘whitepaper’),  Ryoshi called SHIB "an experiment in decentralized, spontaneous community building."

SHIB garnered hype in 2021 when half of SHIB's entire supply was gifted to Ethereum co-founder Vitalik Buterin, who later donated the unexpected trove (worth $1 billion) to Covid-relief efforts in India. 

The Shiba Inu ecosystem consists of two other assets, LEASH and BONE, as well a DeFi platform ‘ShibaSwap’, a ‘Shiba Inu Incubator’ for creative projects, and ‘Shiboshis’, an NFT collection comprising 10,000 unique pieces.

Risks of SHIB

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

• SHIB is a community project. The token has limited utility and no discernible use case.
• As a community token, any potential success associated with SHIB is predominantly reliant on the strength of its community, and their continued trading of the asset. This is highly unpredictable and could result in high volatility.

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

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 13, 2023.