LUKSO Describes Itself As

LUKSO is an EVM blockchain based on the Casper PoS, designed to serve the "New Creative Economy." This has been defined by the LUKSO team as encompassing the social, fashion, art, media, and gaming industries. Built on the principles of identification, virtualization, and tokenization, LUKSO aims to provide the underlying infrastructure for brands, creators, and consumers to engage in future creative economies. 

Although LUKSO leverages the ETH 2.0 technology stack, it is its own layer-1 blockchain network, with a new set of smart contract standards, known as the LUKSO Standard Proposals (LSPs). These LSPs function as essential building blocks, empowering developers and innovators to redefine how creators and users engage with blockchain technology. The ultimate aim is to enhance user experiences and pave the way for more dynamic innovation. LUKSO also proposes Universal Profiles, interoperable blockchain based profiles that enable verifiable identities throughout Web3.

LYX is the native token of the LUKSO blockchain, and is required to secure the network. LYX may be used for transaction fees and network validation via staking. Mainnet went live on May 23, 2023.

The LUKSO project was originally founded in 2017, with the whitepaper released in 2019. The project was founded by Fabian Vogelsteller, previously a Lead Developer at the Ethereum Foundation and credited with authoring the ERC-20 token standard,  and Marjorie Hernandez, who led EY’s Innovation Lab in Berlin. 

Risks of LYX

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

• The Layer-1 space is intensely competitive. Several new blockchains continue to emerge which boast high-profile teams, claim unparalleled transaction speed, energy-efficiency, as well as developer-friendly programming languages. Any potential success associated with LYX is reliant on the extent to which the LUKSO blockchain is adopted by enterprises and developers.

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