Uncertain Regulations and Enforcement Actions: The regulatory status of CRCL Token and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of virtual currencies has become a primary target of regulation 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 CRCL Token and/or the CRCL Ecosystem. Regulatory actions could negatively impact CRCL Token and/or the CRCL Ecosystem in various ways. The CRCL Ecosystem 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.
Inadequate disclosure of information: As at the date hereof, the CRCL Ecosystem 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 white paper contains the most current information relating to the CRCL Ecosystem, it is not absolutely complete and may still be adjusted and updated by the CRCL Foundation and Development team from time to time. The CRCL Development team has no ability and obligation to keep holders of CRCL Token informed of every detail (including development progress and expected milestones) regarding the project to develop the CRCL Ecosystem, hence insufficient information disclosure is inevitable and reasonable.
Competitors : Various types of decentralised applications are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative Ecosystems could be established that utilise the same or similar code and protocol underlying CRCL Token and/or the CRCL Ecosystem and attempt to re-create similar facilities. The CRCL Ecosystem may be required to compete with these alternative Ecosystems, which could negatively impact CRCL Token and/or the CRCL Ecosystem.
Failure to develop: There is the risk that the development of the CRCL Ecosystem 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 CRCL Token, unforeseen technical difficulties, and shortage of development funds or volunteers for activities.
Security weaknesses : Hackers or other malicious groups or organizations may attempt to interfere with CRCL Token and/or the CRCL Ecosystem 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 Foundation, the Distributor or its affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of CRCL Token and/or the CRCL Ecosystem, which could negatively affect CRCL Token and/or the CRCL Ecosystem. 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 CRCL Token and/or the CRCL Ecosystem by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.
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 CRCL Token, including those that the CRCL Team cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on CRCL, its affiliates, and the CRCL Development team, as well as understand the overall framework, mission and vision for the CRCL Ecosystem prior to purchasing CRCL Token.