Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 194

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 194
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 reduce confidence in the stability of USDe. In addition, the Ethena Protocol relies on Off -ExchangeSettlement (“ OES”) providers to custody its backing assets and centralized exchanges to execute derivatives trades. Failures or insolvency of a custodian, or a sudden failure of an exchange, could prevent the protocol from hedging its positions or meeting redemption demands. Any loss of funds or prolonged disruption in these systems could damage the stability of USDe and, by extension, the value of ENA. If USDe were to lose its peg to the U.S. dollar — whether due to funding stresses, collateral depegs, custodial failures, or broader market loss of confidence — the credibility of the Ethena ecosystem could collapse. Because the value of ENA Token is closely tied to the viability of USDe, a failure of USDe would directly and materially impair our ENA Token treasury holdings and our validator business. 67 Stablecoins such as USDe face significant competitive and regulatory challenges that could undermine their success and, in turn, the value of ENA Token. The market for stablecoins is intensely competitive. USDe competes with established issuers such as USDC and USDT, which benefit from scale, liquidity, and institutional trust, as well as with emerging products like yield -bearingtokens and potential bank -issuedstablecoins. If USDe fails to achieve significant adoption among institutional or retail users, its credibility may diminish, undermining confidence in the Ethena ecosystem and the value of ENA Token. Stablecoins also face heightened regulatory scrutiny. USDe, as a synthetic stablecoin reliant on derivatives, presents novel risks that may cause regulators to classify it as a security, derivative, or other regulated instrument. Any such classification could limit its use, distribution, or exchange support. In addition, negative publicity affecting stablecoins generally, or adverse events involving major stablecoins such as USDT or USDC, could spill over into the Ethena ecosystem and reduce demand for USDe. Intense competition, adverse regulatory developments, or negative market sentiment affecting stablecoins could materially undermine USDe’s role in the Ethena ecosystem, reduce confidence in ENA Token’s long -termvalue, and negatively affect our business, financial condition, and results of operations. Risks Related to Government Regulation a nd Legal Compliance ENA Token and other digital assets are novel assets, which will expose StablecoinX to significant legal, commercial, regulatory and technical uncertainty, which could materially adversely affect StablecoinX’s financial position, operations and