Swarm Markets Describes Itself As

Swarm is a blockchain platform that brings unique digitization and trading solutions to the world of traditional finance.  

Swarm is a hybrid, embracing the advantages of blockchain-trading - flexibility, speed and efficiency - and pairing it with the trust and asset-range typically enjoyed by traditional exchanges. Swarm aims to integrate TradFi with DeFi so that everything becomes "Fi". For more information, visit the website.

SMT (Swarm Markets Token), is an ERC20 payment token that operates within Swarm Markets. The token serves several utility purposes within the ecosystem: it offers holders reduced transaction fees, rewards liquidity providers, and incentivizes various platform engagements and RWA activity. 

The platform was co-founded by Philipp Pieper and Timo Lehes, both of whom have been active in the blockchain and cryptocurrency spaces since 2016. Before founding Swarm Markets, they launched open infrastructure for the tokenization of securities. This evolved into Swarm Markets, which builds liquidity solutions for those tokenized assets.

Risks of SMT

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

• Swarm Markets operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

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

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 May 13, 2024.