Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 20

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 20
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 Technologies, Inc. in connection with related
proposed regulatory initiatives which may affect our business. On September 17, 2024, the FDIC, citing certain alleged recordkeeping
issues attendant to Synapse’s comingling of customer funds in custodial accounts, published a notice of proposed rulemaking which
would require certain heightened standards for reconciliation and recordkeeping associated with certain custodial accounts containing
comingled customer funds. These and other regulatory initiatives by U.S. federal or state prudential banking regulators, if enacted, may
increase compliance costs associated with our business or impact our relationships with current or prospective partner banks (see above
risk factor: Our relationships with bank partners in the United States may subject us and our partners to additional regulatory scrutiny.).

Changes in card network
rules or standards could adversely affect our business.

We are registered as a service
provider with Visa network. As such, we are subject to card network rules that could subject us to a variety of fines or penalties that
may be assessed on us. The termination of our membership or any changes in card network rules or standards, including interpretation and
implementation of existing rules or standards, could increase the cost of operating our business or limit our ability to provide our services
to our customers, and could have a material adverse effect on our business, financial condition and results of operations.

We operate in a highly
competitive industry and we compete against companies with greater financial and other resources, and our business, operating results,
and financial condition may be adversely affected if we are unable to respond to our competitors effectively.

The digital assets industry is
highly innovative, rapidly evolving, and characterized by healthy competition, experimentation, changing customer needs, frequent introductions
of new products and services, and subject to uncertain and evolving industry and regulatory requirements. We expect competition to further
intensify in the future as existing and new competitors introduce new products or enhance existing products. We compete against a number
of companies operating both within the United States and abroad, and both those that focus on traditional financial services and those
that focus on Bitcoin-based services. Our main competition falls into the following categories:

| ● | traditional financial firms that have entered the Bitcoin market in recent years and offer overlapping features 
 targeted at our customers;                                                                                      |

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| ● | financial technology providers that do not focus on Bitcoin and may attempt to position themselves as a safer 
 alternative to our products and services;                                                                     |

| ● | mobile payment companies; and |

|