Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 96

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 96
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 trading venues and adversely affect the value of our bitcoin.

Bitcoin trading venues are relatively new and,
in many cases, unregulated. Furthermore, there are many bitcoin trading venues which do not provide the public with significant information
regarding their ownership structure, management teams, corporate practices and regulatory compliance. As a result, the marketplace may
lose confidence in bitcoin trading venues, including prominent exchanges that handle a significant volume of bitcoin trading and/or are
subject to regulatory oversight, in the event one or more bitcoin trading venues cease or pause for a prolonged period the trading of
bitcoin or other digital assets, or experience fraud, significant volumes of withdrawal, security failures or operational problems.

In 2019 there were reports claiming that 80-95%
of bitcoin trading volume on trading venues was false or non-economic in nature, with specific focus on unregulated exchanges located
outside of the United States. The SEC also alleged as part of its June 5, 2023 complaint against Binance Holdings Ltd. that Binance committed
strategic and targeted “wash trading” through its affiliates to artificially inflate the volume of certain digital assets
traded on its exchange. The SEC has also brought recent actions against individuals and digital asset market participants alleging that
such persons artificially increased trading volumes in certain digital assets through wash trades, or repeated buying and selling of the
same assets in fictitious transactions to manipulate their underlying trading price. Such reports and allegations may indicate that the
bitcoin market is significantly smaller than expected and that the United States makes up a significantly larger percentage of the bitcoin
market than is commonly understood. Any actual or perceived wash trading in the bitcoin market, and any other fraudulent or manipulative
acts and practices, could adversely affect the value of our bitcoin. Negative perception, a lack of stability in the broader bitcoin markets
and the closure, temporary shutdown or operational disruption of bitcoin trading venues, lending institutions, institutional investors,
institutional miners, custodians, or other major participants in the bitcoin ecosystem, due to fraud, business failure, cybersecurity
events, government-mandated regulation, bankruptcy, or for any other reason, may result in a decline in confidence in bitcoin and the
broader bitcoin ecosystem and greater volatility in the price of bitcoin. For example, in 2022, each of Celsius Network, Voyager Digital,
Three Arrows Capital, FTX, and BlockFi filed for bankruptcy, following which the market prices of bitcoin and other digital assets significantly
declined. In addition, in June 2023, the SEC