Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 97

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 97
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 to buy, hold, or sell complex products
and non-traditional ETPs, or an investment strategy involving such products, may be subject to additional or heightened scrutiny that
would not be applicable to broker-dealers making recommendations with respect to our Class A ordinary shares. Based on how we are viewed
in the market relative to ETPs, and other vehicles which offer economic exposure to bitcoin, such as bitcoin futures exchange-traded funds
(“ETFs”), leveraged bitcoin futures ETFs, and similar vehicles offered on international exchanges, any premium or discount
in our Class A ordinary shares relative to the value of our bitcoin holdings may increase or decrease in different market conditions.

As a result of the foregoing factors, availability
of spot ETPs for bitcoin and other digital assets could have a material adverse effect on the market price of our listed securities.

Our bitcoin strategy subjects us to enhanced regulatory oversight.

As noted above, several spot bitcoin ETPs have
received approval from the SEC to list their shares on a U.S. national securities exchange with continuous share creation and redemption
at net asset value. Even though we are not, and do not function in the manner of, a spot bitcoin ETP, it is possible that we nevertheless
could face regulatory scrutiny from the SEC or other federal or state agencies due to our bitcoin holdings.

In addition, there has been increasing focus on
the extent to which digital assets can be used to launder the proceeds of illegal activities, fund criminal or terrorist activities, or
circumvent sanctions regimes, including those sanctions imposed in response to the ongoing conflict between Russia and Ukraine. While
we have implemented and maintain policies and procedures reasonably designed to promote compliance with applicable anti-money laundering
and sanctions laws and regulations and take care to only acquire our bitcoin through entities subject to anti-money laundering regulation
and related compliance rules in the United States, if we are found to have purchased any of our bitcoin from bad actors that have used
bitcoin to launder money or persons subject to sanctions, we may be subject to regulatory proceedings and any further transactions or
dealings in bitcoin by us may be restricted or prohibited.

We may incur indebtedness or enter into other financial
instruments in the future that may be collateralized by our bitcoin holdings. We may also consider pursuing strategies to create income
streams or otherwise generate funds using our bitcoin holdings. These types of bitcoin-related transactions are the subject of enhanced
regulatory oversight. These and any other bitcoin-related transactions we may enter into, beyond simply acquiring and