Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 43

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 43
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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 that Binance Holdings Ltd. 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 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 false 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 announced enforcement actions against Coinbase, Inc., and Binance Holdings Ltd., two providers of large trading venues for digital
assets, which similarly was followed by a decrease in the market price of bitcoin and other digital assets. These were followed in November
2023, by an SEC enforcement action against Payward Inc. and Payward Ventures Inc., together known as Kraken, another large trading venue
for digital assets. The price of our common stock may be affected by the value of our bitcoin holdings, the failure of a major participant
in the bitcoin ecosystem could have a material adverse effect on the market price of our common stock.

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If we or our third-party service providers