Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 181

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 181
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 artificial price support. Limited independent oversight makes it difficult to assess whether price
discovery is organic or influenced by external factors, which could have an adverse impact on the value and reputation of WLD.

In
addition, the illiquidity of WLD is likely to have a direct impact on the execution and success of the Company’s treasury strategy.
If, for example, the Company’s treasury needs liquidity and there is no or an insufficient liquid market for WLD, the Company may
have to request liquidity from large holders of WLD. To date, the Company has primarily acquired WLD via over-the-counter purchases through
trading desks. Additionally, the Company has plans to purchase WLD directly from existing large holders. These transactions may not be
successful and the Company may determine that the terms of offers from such holders, or any future holders, to be off-market and not
favorable to the Company. Without liquidity, the offer to sell or buy WLD may be at prices or terms that are not commercially reasonable.
It may also mean that the Company may not be able to fulfill its treasury strategy if it cannot source or sell WLD or it can only do
so at prices it deems unreasonable. The illiquidity of WLD, if it continues, is likely to have a material adverse effect on the value
of the Company’s common stock.

Privacy
risks from biometric verification are extensive and may lead to significant barriers to entry.

Worldcoin’s
identity-verification process relies on collecting biometric data through its Orb iris-scanning hardware. Because an iris pattern is
a unique biometric identifier, there are numerous concerns about how that data is protected, retained, used, controlled and deleted,
in addition to what happens to the data if it is stolen and fraudulently used. Regulators globally have opened inquiries or expressed
concern regarding data protection and privacy due to its biometric collection practices through Worldcoin’s Orb iris-scanning device.
The concern about the risks of biometric data has been linked to privacy issues in other contexts. For example, in the U.S., while the
Health Insurance Portability and Accountability Act (“HIPAA”) does not apply directly, the statute illustrates the heightened
security standards regulators evaluate when considering biometric data, including HIPAA’s standards for encryption, consent, data
protection and breach notification. There are additional privacy concerns that are relevant under applicable law, such as the accuracy
of data, the age of the participants, cross-border transfers, and