Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 228

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 228
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 rules and regulations and are potentially
able to more quickly adapt to trends and to develop new Bitcoin-based products and services due to a different standard of regulatory
scrutiny.

Many innovative start-up companies and larger companies
have made, and continue to make, significant investments in research and development, and we expect these companies to continue to develop
similar or potentially superior products and technologies that compete with our products. Further, more traditional financial and non-financial
services businesses may choose to offer Bitcoin-based services in the future as the industry gains adoption. Our current and potential
competitors may establish cooperative relationships among themselves or with third parties that may further enhance their resources.

Our existing competitors have, and our potential
competitors are expected to have, various competitive advantages over us, such as:

●the ability to offer products and services that we do not
support or offer on our platform (due to constraints from regulatory authorities, our banking partners, and other factors) such as digital
assets that constitute securities or derivative instruments under U.S. or foreign laws;

●greater name recognition, longer operating histories, larger
customer bases, and larger market shares;

●larger sales and marketing budgets and organizations;

●more established marketing, banking, and compliance relationships;

●greater customer support resources;

●greater resources to make acquisitions;

●lower labor, compliance, risk mitigation, and research and
development costs;

●larger and more mature intellectual property portfolios;

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●greater number of applicable licenses or similar authorizations;

●operations in certain jurisdictions with lower compliance
costs and greater flexibility to explore new product offerings; and

●substantially greater financial, technical, and other resources.

If we are unable to compete successfully, or if
competing successfully requires us to take costly actions in response to the actions of our competitors, our business, operating results,
and financial condition could be adversely affected.

Our long-term success depends on our ability to develop new and
innovative products and services to address and keep pace with the rapidly evolving market for payments and financial services, and, if
we are not able to implement successful enhancements and new features for our products and services, our business, operating results and
financial condition could be materially and adversely affected.

Rapid and significant technological changes continue
to confront the industries in which we operate, including developments in digital banking, mobile financial apps, and point-of-service
solutions, as well as developments in Bitcoin and in tokenization, which replaces sensitive data (e.g., payment card