Token Description & Project Background

Founded in 2017 by former Qualcomm and Intel engineers Anatoly Yakonvenko, Greg Fitzgerald and Eric William, Solana (SOL) is a single-chain, delegated-Proof-of-Stake protocol focused on delivering scalability without compromising security. 

It was purpose built to address the scalability challenges of Ethereum and Bitcoin. The testnet launched in 2018 with the blockchain going live in July 2019.

The Solana blockchain is underpinned by Proof of History (PoH) which is a proof for verifying the order and time passage between events.

SOL is used to cover transaction fees, and secure the network through staking; alternatively, users can delegate their holding to an active validator and receive inflation rewards. 

Risks of SOL

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

• The Layer-1 space is fiercely competitive. Solana bills itself as another ‘Ethereum-killer’ - any potential success associated with the SOL token will depend on the network’s continued adoption by enterprises and projects.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with SOL . 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 SOL community and core team and developers are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of SOL have no recourse to its core team, current developers or Uphold if SOL 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 SOL on the Uphold Platform, Uphold performed due diligence on SOL and determined that SOL 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 SOL, including ensuring the source code being open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of SOL.
• Marketing materials put forward by the SOL social team including, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with SOL, including any code defects, security breaches and other threats concerning SOL 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 SOL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SOL. 

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.