Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 83

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 complies with multiple different and inconsistent regulatory frameworks.
Litigation and regulatory scrutiny can take significant amounts of time and resources and create uncertainty, which can lead to business
delays, which may threaten the business overall even if the product is ultimately found to be acceptable. If Worldcoin is unable to comply
with these regulations, adoption of Worldcoin technology and the utility of WLD may be limited. Collectively, these privacy concerns
could present substantial barriers to adoption and could materially and adversely affect the value and long-term viability of WLD tokens
and the Worldcoin project, which, because of the Company’s focus on its WLD treasury strategy, could have an adverse impact on
the value of the Company’s common stock.

46

Worldcoin’s
requirement for in-person iris scans could create a significant adoption barrier compared to digital-only identity systems.

Worldcoin’s
reliance on in-person iris scanning through proprietary Orb devices may present a significant hurdle to Worldcoin’s adoption. Digital-only
identity protocols or other Web3 self-sovereign identity platforms allow users to enroll and verify their identities online. However,
Worldcoin requires individuals to locate and travel to an Orb operator and undergo a physical biometric capture. According to Worldcoin’s
blog, more than 1,500 Orb centers are active as of April 2025 [NTD – can this be updated?] in 23 countries. This extra step of
going to an Orb may slow user growth, particularly in regions where Orb coverage is limited, travel is difficult, religious norms discourage
biometric sign-ups, or regulatory frameworks do not allow biometric capture. Orbs may not be broadly available, for example, they are
not currently available in the New York metropolitan area. These barriers for adoption could cause Worldcoin to fall behind competing
companies that offer identity solutions that are potentially less privacy-invasive or difficult to undergo, negatively impacting the
value of WLD and therefore the value of the Company’s common stock.

Worldcoin’s
biometric data is a high-value attack target for cyber-criminals and other bad actors.

Worldcoin
and other digital assets and the entities that provide services to participants in blockchain ecosystems have been, and may in the future
be, subject to security breaches, cyberattacks, or other malicious activities. For example, in October 2021 it was reported that hackers
exploited a flaw in the account recovery process and stole from the accounts of at least 6,000 customers of the Coinbase exchange, although