Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 95

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 95
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 could be adversely affected. Moreover, even if general economic conditions improve, there is no guarantee that the cryptoeconomy
will similarly improve.

54

Further, in 2022, a number of blockchain protocols
and crypto financial firms, and in particular protocols and firms involving high levels of financial leverage such as high-yield lending
products or derivatives trading, suffered from insolvency and liquidity crises leading to the 2022 Events. Some of the 2022 Events are
alleged or have been held to be the result of fraudulent activity by insiders, including misappropriation of customer funds and other
illicit activity and internal controls failures. In connection with the 2022 Events, concerns were raised about the potential for a market
condition where the failure of one company leads to the financial distress of other companies, which has the potential to depress the
prices of assets used as collateral by other firms. If such a market condition were to become widespread in the cryptoeconomy, we could
suffer from increased counterparty risk, including defaults or bankruptcies of major customers or counterparties, which could lead to
significantly reduced activity on our platform and fewer available Bitcoin market opportunities in general. Further, forced selling of
Bitcoin by distressed companies could lead to lower Bitcoin prices and may lead to a reduction in our revenue. To the extent that conditions
in the general economic and the Bitcoin market were to materially deteriorate, our ability to attract and retain customers may suffer.

Actual events involving limited liquidity, defaults,
non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the
financial services industry, or the financial services industry generally, or concerns or rumors about any such events or other similar
risks, have in the past and may in the future lead to market-wide liquidity problems. Further, if the instability in the global banking
system continues or worsens, there could be additional negative ramifications, such as additional all market-wide liquidity problems or
impacted access to deposits and investments for customers of affected banks and certain banking partners, and our business, operating
results and financial condition could be adversely affected.

We are a remote-first company which subjects us to heightened
operational risks.

Our employees and service providers work from home
and we are a remote-first company. This subjects us to heightened operational risks. For example, technologies in our employees’
and service providers’ homes may not be as robust as in an office environment and could cause the networks, information systems,
applications, and