Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 412

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 412
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us. Risks and Challenges We plan to operate in a dynamic and highly competitive industry characterized by rapid technological advancements and regulatory uncertainties. Key risks include: • Market Volatility: The value of ENA Tokens is subject to significant price fluctuations, which could impact the Company’s treasury reserves and financial stability. • Regulatory Environment: Evolving regulations surrounding cryptocurrencies and blockchain technology may impose compliance requirements or restrictions on validator operations. • Technological Risks: The Company’s success depends on operating and maintaining secure and reliable validator nodes, which could be vulnerable to cyberattacks or technical failures. • Dependency on Ethena: The Company is reliant on the success and performance of (i) the Ethena protocol and its stablecoin products, which include but are not limited to, sUSDe and (ii) Ethena Labs, who issues USDe through an affiliate. • Competition: The validator and infrastructure services market is competitive, with established players and new entrants vying for market share. To address these challenges, we plan to prioritize investments in cybersecurity, regulatory compliance, promoting education and usage of the Ethena products, and strategic partnerships within the Ethena ecosystem to maintain a competitive edge. We expect to work with our software license partners, establish new partnerships with other software providers, and engage public relations firms to promote Ethena which will be funded from our expected staking revenues. In the case where the proposed Converge network has not launched by the time we Closing or we are 197 otherwise unable to produce staking revenues from the proposed Converge network or other validation opportunities in the Ethena ecosystem utilizing ENA Token, we expect to produce revenues from other sources such as running validator nodes on Ethereum or other supported networks for institutional clients. See “— Our validator business depends on the successful launch and operation of the Converge network, and any delay, failure to launch, or changes in anticipated procedures and policies could materially and adversely affect our business.” Operating within the blockchain and crypto asset industry exposes us to unique risks and challenges associated with an emerging and rapidly evolving sector. The prices of crypto assets have experienced significant volatility, often driven by speculative activity, evolving technology, and shifting regulatory landscapes. This volatility may reflect “bubble -like” dynamics, where prices are influenced by rapidly changing investor sentiment, media coverage, or manipulation, rather than fundamental factors. Additionally, the blockchain and crypto asset sector operates within an environment of regulatory uncertainty, with potential changes in laws or enforcement actions posing risks to businesses across the ecosystem. Fraudulent actors