Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 190

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 190
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 increase volatility and adversely impact our ability to acquire or dispose of ENA Token at desired prices. In addition, the concentration of ENA Token holdings among a limited number of participants, including early ecosystem contributors, may further increase the risk that a single market participant or group of participants could significantly influence ENA Token’s trading price. Any fraud, manipulation, or perceived lack of market integrity in the proposed Converge network (or any other network validation opportunities in the Ethena ecosystem utilizing ENA Token) or the market for ENA Token could adversely affect investor confidence in ENA Token, reduce liquidity, depress the market price of ENA Token, and thereby negatively affect the value of our ENA holdings and the market price for StablecoinX Class A Common Stock. Because our validator business depends on ENA Token as staking collateral, significant declines in the price of ENA Token caused by manipulation or fraud could also reduce our staking rewards, subject us to slashing penalties, and materially harm our business, financial condition, and results of operations. Our custodians have limited insurance protection which exposes us and our shareholders to the risk of loss of our ENA Token for which no person is liable. We do not expect to maintain insurance coverage for our ENA Token holdings outside of the limited insurance policies that our custodians carry for client wallets. Therefore, a loss may be suffered with respect to our ENA Token that is not covered by insurance and for which no person is liable in damages, which could adversely affect our operations and, consequently, an investment in us. Our future custodians may maintain certain insurance coverage of such types and amounts as they assert to be commercially reasonable for their custodial services provided under our custody agreements with them, including certain commercial crime insurance of limited aggregate principal amount which covers losses stemming from fraud, security breach, hack and asset theft. However, such insurance coverage may be insufficient to protect us against all losses of our ENA Token holdings held in custody with our custodians, whether or not stemming from security breaches, cyberattacks or other types of unlawful activity. Therefore, a loss may be suffered with respect to our ENA Token that is not covered by insurance and for which no person is liable in damages, which could adversely affect our operations and, consequently, an investment in us. We face other risks related to our ENA Token focused treasury reserve business model. Our ENA Token focused treasury reserve business model exposes us to various risks, including the following: •ENA Token and other digital assets are subject to