Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 98

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 98
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 since then and may undertake additional upgrades in the future. If the mechanisms for validating transactions in Ethereum and
other alternative digital assets are perceived as superior to proof-of-work mining, those digital assets could gain market share relative
to bitcoin.

Other alternative digital assets that compete with
bitcoin in certain ways include “stablecoins,” which are designed to maintain a constant price because of, for instance, their
issuers’ promise to hold high-quality liquid assets (such as U.S. dollar deposits and short-term U.S. treasury securities) equal
to the total value of stablecoins in circulation. Stablecoins have grown rapidly as an alternative to bitcoin and other digital assets
as a medium of exchange and store of value, particularly on digital asset trading platforms. As of December 31, 2024, two of the eight
largest digital assets by market capitalization were U.S. dollar-pegged stablecoins.

Additionally, central banks in some countries have
started to introduce digital forms of legal tender. For example, China’s 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 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, bitcoin and other digital assets as a medium of exchange or store of value. As a result, the emergence
or growth of these or other digital assets could cause the market price of bitcoin to decrease, which could have a material adverse effect
on our business, prospects, financial condition, and operating results.

Our bitcoin holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.

Historically, the bitcoin market has been characterized
by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, relative anonymity,
a developing regulatory landscape, potential susceptibility to market abuse and manipulation, compliance and internal control failures
at exchanges, and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of market
instability, we may not be able to sell our bitcoin at favorable prices or at all. For example, a number of bitcoin trading venues temporarily
halted deposits and withdrawals in 2022, although the Coinbase exchange (our principal market for bitcoin) has, to date, not done so