ESZCoin Risks and Disclosures
All information and analyses are estimates utilizing publicly available, company provided information (e.g., EtherSportz whitepaper), contractor information, and third party data sources. None of the information has been verified by the company or any other third party.
Historical performance or other information regarding the likelihood of token and company performance or various outcomes are hypothetical in nature and are not guarantees of future results.
Risks and Warnings
EtherSportz LLC (“EtherSportz”) is subject to a number of risks related to the development and operation of the EtherSportz Platform and the ESZCoin, along with the risks related to the ESZCoin Tokens (“ESZCoin”) and the ESZCoin Token Sale. These risks include, but are not limited to, the following:
EtherSportz is a Start Up with Limited History
EtherSportz has not generated revenue, and does not foresee generating enough revenue in the near future to finance operations and therefore is reliant on external financing. EtherSportz is a startup and its business model currently focuses on development and build out of the EtherSportz Platform for at least the first year of 2018, before any revenue is expected to be generated. While EtherSportz intends to generate revenue in the future, it cannot guarantee when or if it will be able to do so.
EtherSportz has little operating history upon which a ESZCoin holder can evaluate its performance, and accordingly, its prospects must be considered in light of the risks that a new tech company of its nature might encounter, including, but not limited to, unforeseen expenses or technical challenges, third-party cooperation and integration, legal and regulatory challenges, competition, and public interest. EtherSportz has not prepared any audited financial statements.
There is presently no publicly available financial information regarding EtherSportz’s capitalization, assets or liabilities.
Limited Information for ESZCoin Holders
There is limited public information about ESZCoin. The price at which the buyer is agreeing to purchase ESZCoin may not represent current fair market valuation. The ESZCoin holder may not have an accurate appraisal of the future valuation of ESZCoin. ESZCoin holders should assume that EtherSportz generally possesses material information about itself not known to the ESZCoin holder or the public. Buyers should perform their own due diligence prior to purchasing.
ESZCoin Holders Have No Control Over EtherSportz
ESZCoin contains no equity value in the EtherSportz, LLC company. Purchasers of ESZCoins will not have a vote or influence on EtherSportz’s management. Substantially all decisions with respect to the management of EtherSportz will be made exclusively by EtherSportz’s officers, managers and employees. Purchasers will have no right to vote on issues of, or otherwise participate in, EtherSportz management. Accordingly, no person should purchase an ESZCoin unless they are willing to entrust all aspects of EtherSportz management to EtherSportz’s management team.
ESZCoin Has No Guaranteed Value
EtherSportz does not guarantee any specific value of ESZCoin Tokens and cautions purchasers of ESZCoin Tokens that there is a significant likelihood their value may decrease.
General Uncertainty and Expectations
Results may vary materially from those expressed or implied in EtherSportz forward-looking statements. Important factors that could cause actual results to differ materially from those in its forward-looking statements include government regulations, new or changed economic, strategic, political and social conditions.
EtherSportz Discretion on Use of Proceeds
EtherSportz has ultimate discretion on how it uses it’s proceeds. The net proceeds from the EtherSportz company will be used for such purposes as the EtherSportz management team deems to be in EtherSportz’s best interest in order to address changed circumstances or opportunities. Forward looking statements made by EtherSportz as to the breakdown of fund allocation serve only as a general guideline of how the funds might be allocated in the future, not as a guarantee. As a result of the foregoing, EtherSportz’s success will be substantially dependent upon its discretion and judgment with respect to application and allocation of all net proceeds. EtherSportz may choose to use the proceeds in a manner with which ESZCoin holders do not agree and ESZCoin holders will have no recourse. A use of proceeds that does not further EtherSportz’s business and goals could harm EtherSportz and its operations and ultimately cause a purchaser to lose all or a portion of their investment.
Risk that the EtherSportz Platform, as Developed, Will Not Meet the Expectations of the ESZCoins Holder
The EtherSportz platform is presently in the planning phase and may undergo significant changes before its development and final release. Any expectations regarding the form and functionality of ESZCoin or the EtherSportz platform held by the purchaser of ESZCoin may not be realized upon release for any number of reasons.
Inherently High Risk Investment
Participating in tokens, digital assets, or cryptocurrencies carries a very high degree of risk. Only purchasers familiar with acquiring tokens, digital assets, or cryptocurrencies should consider this opportunity. No purchaser should invest in this offering unless it can tolerate total loss of all invested capital.
Risk from Regulatory Bodies
Blockchain technologies have been a growing subject of scrutiny by various regulatory bodies around the world. The functioning of the EtherSportz platform, ESZCoin, Ethereum or Ether could be changed by the inquiries or actions taken by these regulatory bodies, which could result (but is not limited to) the restriction of the use or possession of digital tokens (including ESZCoin), which could impede or limit the development of the EtherSportz platform.
Risk of Tax Liabilities
The purchase of a digital asset like ESZCoin may subject the purchaser to tax burdens by their home countries or by certain national or international regulatory bodies. Additionally, the tax treatment of ESZCoin, the purchase rights contained therein and the token distribution is uncertain and there may be adverse tax consequences for purchasers upon certain future events. Purchasers should consult their own tax advisors for guidance on tax treatment of ESZCoin in their home jurisdictions.
Risk Associated with the Ethereum Protocol and Ether
The Ethereum blockchain network on which the token operates utilizes code that is subject to change at any time. These changes may have unintended consequences for ESZCoin. Any malfunction, unintended function or unexpected functioning of the Ethereum protocol may cause ESZCoin to malfunction or function in an unexpected or unintended manner. Additionally, Ether, the value token which supports Ethereum, may itself lose value, which could carry negative consequences for ESZCoin.
Risk of Adverse Market Fluctuations During or Shortly After this Offering
To raise funds for the EtherSportz platform, EtherSportz is conducting an offering denominated in Ether, with a majority of those Ether proceeds going to fund the platform’s initial development. It is possible for the value of Ether to fluctuate very unfavorably during or shortly after the offering, and if those fluctuations were dramatic enough, the EtherSportz team may not be able to fund the development of the platform, or may not be able to develop the platform in the manner that was initially envisioned or presented.
Risk of Audience Size at Launch
EtherSportz may be unable to successfully consummate the launch of its platform, attract new users to the EtherSportz platform and grow its user base through widespread use and adoption of the EtherSportz platform, which could carry negative consequences for the platform’s profitability.
Risk of Insufficient Public Interest in the EtherSportz Platform
It is possible that the EtherSportz platform will not gain much traction with the public, possibly resulting in a small or unsustainable user-base. This could negatively impact the further development of the EtherSportz platform, its profitability, and the uses and value of the ESZCoin. It is entirely possible that there may be little to no profit to draw from, or that an individual’s initial Ether contribution into ESZCoins may be lost.
Risk of Security Weaknesses in the EtherSportz Platform
The team behind EtherSportz, and any other third parties involved in its development, may knowingly or unknowingly introduce weaknesses or bugs into the core infrastructure of the EtherSportz platform, which may result in the loss, or interfere in the use of, ESZCoin or Ether.
Risk of Cyberattacks, Hacking and Theft
EtherSportz and ESZCoin may be the target of malicious cyberattacks or may contain exploitable flaws in its underlying code, which may result in security breaches and the loss or theft of ESZCoin. Individuals, groups or organizations may attempt to interfere with the EtherSportz platform, the games or hosting service that the EtherSportz platform utilizes, or the ESZCoin Tokens themselves, resulting in any number of negative outcomes such as loss of ESZCoin or losses in the platform’s profitability.
Risk of Cryptographic Breakthroughs
Advances in cryptography, quantum computers, or other technical developments could introduce new weaknesses or previously unknown exploits for cryptocurrencies and smart contracts, which could negatively impact the use of ESZCoins or Ether, possibly resulting in their loss of theft.
Risk of Dissolution of the EtherSportz Platform
Due to any number of reasons, the EtherSportz platform may no longer be a viable business model and may dissolve or fail to launch.
Risk of Uninsured Losses
Unlike financial accounts held by major financial institutions, funds held using the EtherSportz Platform or Ethereum network are generally uninsured. In the event of any loss, there is no public insurer, or private insurer, to offer recourse to ESZCoin holders.
In addition to the above risks there are many other potential risks that the EtherSportz team cannot anticipate.