Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 97

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 97
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 continued development, security, and governance of the Story Protocol may depend on a small number of contributors or a foundation. Loss of these contributors — or strategic disagreements (including over forks) — could impair $IP token’s value. The emergence or growth of other digital assets, including those with significant private or public sector backing, including by governments, consortiums or financial institutions, could have a negative impact on the price of $IP Tokens and adversely affect our securities. Following the launch of our proposed digital asset treasury strategy, as a result of our $IP tokens strategy, we expect our assets to be concentrated in $IP tokens holdings. Accordingly, the emergence or growth of digital assets other than $IP tokens may have a material adverse effect on our financial condition. Alternative digital assets that compete with $IP tokens in certain ways include “stablecoins,” which are designed to maintain a constant price related to or based on some other asset or traditional currency because of, for instance, their issuers’ promise to hold high -qualityliquid assets (such as U.S. dollar deposits and short -termU.S. treasury securities) equal to the total value of stablecoins in circulation. In June 2025, the U.S. Senate passed the “GENIUS Act,” which would establish a federal framework for “payment stablecoins,” treating them as payment systems, not securities, and mandating fiat -backedreserves, monthly disclosures, anti -moneylaundering safeguards, and similar measures. Stablecoins have grown rapidly as an alternative to $IP tokens and other digital assets as a medium of exchange and store of value, particularly on digital asset trading platforms, and their use as an alternative to $IP tokens could expand further if the GENIUS Act is enacted as law. As of July 31, 2025, two of the seven largest digital assets by market capitalization were U.S. dollar -peggedstablecoins. Additionally, central banks in some countries have started to introduce digital forms of legal tender. For example, China’s central bank digital currency (“CBDC”) project was made available to consumers in January 2022, and governments including the United States, the United Kingdom, the European Union, and Israel have been 54 discussing the potential creation of new CBDCs. Whether or not they incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could also compete with, or replace, $IP tokens and other digital assets as a medium of exchange or store of value. As a result