IOTA is an open-source distributed ledger technology designed to bring real-world applications on-chain. The network powers a public goods infrastructure optimized for enterprise solutions and Web3 innovation. With smart contracts and a modular architecture, the IOTA mainnet provides a global, permissionless foundation for diverse applications. Founded in 2015, IOTA is led by the non-profit IOTA Foundation, headquartered in Berlin, Germany. Supporting its mission are the Swiss-based Tangle Ecosystem Association and the IOTA Ecosystem DLT Foundation, the first DLT foundation registered under the Abu Dhabi Global Market.

Project Function

• Scalability & high throughput: The DAG architecture enables parallel transaction validation; this allows high transaction rates and fast/near-instant finality.
• Smart contracts & programmability: The network has evolved. The “Mainnet” is now “Move-based Layer 1 with object-centric architecture.” There’s also a “Layer 2 EVM” (Ethereum Virtual Machine) layer, allowing interoperability with Ethereum-style smart contracts.
• Ecosystem “Trust Framework” for real-world use: The project offers modules such as identity (digital identity), tokenization of real-world assets, notarization, hierarchical trust delegation, and “gas station” tools to simplify onboarding and UX.
• Staking & validator support: With recent updates, IOTA now supports staking, allowing network participants to stake IOTA tokens to help secure the network and earn rewards.

Token Utility 

• Staking: Users stake IOTA to participate in the delegated proof-of-stake (DPoS) consensus and help secure the network.
• Transaction fees (gas): IOTA is used as the unit for paying “gas” or fees required to execute transactions or store data on the network.
• Value transfers: As a liquid asset, IOTA functions as a medium of exchange, unit of account, and store of value (i.e., a “currency”).
• Governance: Holding IOTA allows to participate in on-chain voting on issues such as protocol upgrades via token delegation to validators.

About The Founders

• Dominik Schiener - Co-Founder of IOTA and Chairman of the Board of Directors at IOTA Foundation: Before IOTA, Schiener engaged with early blockchain/cryptocurrency efforts. His early entrepreneurial ventures included a startup (called Bithaus GmbH)
• Prof. Serguei Popov - Co-Founder of IOTA and Supervisory Board Member at IOTA Foundation: Popov became interested in cryptocurrencies around 2013, particularly in the discussions around NXT. He contributed mathematical analyses related to consensus and helped render the theoretical foundation of what became IOTA’s ledger architecture.

Risks of IOTA

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

• IOTA 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 IOTA. 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 IOTA community and founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of IOTA have no recourse to the IOTA community, founding team, or Uphold if IOTA 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 IOTA on the Uphold Platform, Uphold performed due diligence on IOTA and determined that IOTA 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 IOTA, 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 IOTA.

• Any marketing materials put forward by the IOTA social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

• Material technical risks associated with IOTA, including any code defects, security breaches and other threats concerning IOTA 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 IOTA, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of IOTA.