Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 256

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 256
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 Any
inaccuracy in the third-party data we use could cause us to overstate or understate our key metrics. We regularly review our processes
for calculating these metrics, and from time to time we make adjustments to improve their accuracy.

Our key business metrics may also be impacted by
compliance or fraud-related bans, technical incidents, or false or spam accounts in existence on our platform. We regularly deactivate
fraudulent and spam accounts that violate our terms of service, and exclude these users from the calculation of our key business metrics;
however, we may not succeed in identifying and removing all such accounts from our platform.

34

We may change our key business metrics from time
to time, which may be perceived negatively. Given the rapid evolution of the digital assets space, we regularly evaluate whether our key
business metrics remain meaningful indicators of the performance of our business. As a result of these evaluations, in the past we have
decided to make changes, and in the future may make additional changes, to our key business metrics, including eliminating or replacing
existing metrics. Further if investors or the media perceive any changes to our key business metrics disclosures negatively, our business
could be adversely affected.

Unfavorable media coverage could negatively affect our business.

Unfavorable publicity regarding, for example, our
product changes, product quality, litigation or regulatory activity, privacy practices, terms of service, employment matters, the use
of our products or services (including Bitcoin-related products and services) for illicit or objectionable ends, the actions of our customers,
or the actions of other companies that provide similar services to ours, has in the past, and could in the future, adversely affect our
reputation. Further, we have in the past, and may in the future, be the target of social media campaigns criticizing actual or perceived
actions or inactions that are disfavored by our customers, employees, or society at-large, which campaigns could materially impact our
customers’ decisions to use our platform. Any such negative publicity could have an adverse effect on the size, activity, and loyalty
of our customers and result in a decrease in net revenue, which could adversely affect our business, operating results, and financial
condition.

Our products and services may be exploited to facilitate illegal
activity such as fraud, money laundering, gambling, sanctions violations, tax evasion, and scams. If any of our customers use our products
or services to further such illegal activities, our business could be adversely affected.

Our products and services may be