Token Description & Project Background

SuperRare and Ethereum-based network for artists and collectors to create, distribute and curate digital art pieces. 

The protocol enables artists to tokenize their art via smart contracts to be sold on the SuperRare marketplace. SuperRare combines a marketplace with various social elements to create a platform for “high-quality” works of art. Independent galleries called “spaces” serve as means through which artists mint and auction their digital creations.

Each NFT listed on the platform is subject to a 15% seller’s fee which is split between the SuperRare DAO and the individual storefront (i.e. space) responsible for facilitating the asset’s sale. Moreover, artists are entitled to a 10% royalty fee each time their creation is sold via the platform’s peer to peer marketplace.

RARE is the governance token for SuperRare. The token enables the community to have an active voice in the network work and contribute to the decision-making process for the future of the protocol.

The RARE token was distributed via airdrop on 21 August 2021 to those who had minted or purchased artwork on SuperRare before 21 July 2021. 

John Crain (CEO), Jonathan Perkins (CPO), and Charles Crain (CTO) founded SuperRare in 2017.

Risks of RARE

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

• Any potential success associated with RARE depends on the SuperRare platform’s rate of adoption by NFT creators and collectors.
• The NFT marketplace space has become increasingly competitive since SuperRare’s inception in 2017. Any potential success associated with RARE depends on SuperRare’s rate of adoption.
• Any potential success associated with RARE depends on a number of external factors, including the growth of the NFT economy.

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

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.