Totem is currently in the initial development stages and there are a variety of unforeseeable risks.
You acknowledge and agree that there are numerous risks associated with acquiring CTZN, holding CTZN, and using CTZN for participation in Totem . In the worst scenario, this could lead to the loss of all or part of CTZN held. IF YOU DECIDE TO ACQUIRE CITIZEN OR PARTICIPATE IN TOTEM, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:
  1. 1.
    Uncertain Regulations and Enforcement Actions:
The regulatory status of CTZN and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of virtual currencies has become a primary target of regulators in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including CTZN and/or Totem. Regulatory actions could negatively impact CTZN and/or the Totem in various ways. The Company, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors and continuous analysis of the development and legal structure of virtual currencies, a cautious approach will be applied towards the sale of CTZN. Therefore, for the token sale, the sale strategy may be constantly adjusted in order to avoid relevant legal risks as much as possible.
2. Inadequate disclosure of information
As at the date hereof, Totem is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this Whitepaper contains the most current information relating to the Totem, it is not absolutely complete and may still be adjusted and updated by the Totem team from time to time. The Totem team has no ability and obligation to keep holders of CTZN informed of every detail (including development progress and expected milestones) regarding the project to develop Totem, hence insufficient information disclosure is inevitable and reasonable.
Various types of decentralized applications are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that an alternative could be established that utilizes the same or similar code and protocol underlying CTZN and/or the Totem and attempt to re-create similar facilities. Totem may be required to compete with these alternatives, which could negatively impact CTZN.
4. Loss of Talent
The development of the Totem greatly depends on the continued cooperation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. The loss of any member may adversely affect the project or its future development. Further, stability and cohesion within the team is critical to the overall development of Totem. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in negative influence on the project in the future.
5. Failure to develop
There is the risk that the development of Totem will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or CTZN, unforeseen technical difficulties, and shortage of development funds for activities.
6.Security weaknesses
Hackers or other malicious groups or organizations may attempt to interfere with CTZN and/or Totem in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Company, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of CTZN and/or Totem, which could negatively affect CTZN and/or Totem. Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to CTZN and/or Totem by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.
7. Other risks
In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks associated with your purchase, holding and use of CTZN token, including those that the Company or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Company, the Distributor, their respective affiliates, and the Totem team, as well as understand the overall framework, mission and vision for the Totem prior to purchasing CTZN.
Last modified 1yr ago