Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 230

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 230
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 or more of our custodians becomes a debtor in a bankruptcy case
or is the subject of other liquidation, insolvency or similar proceedings.

While
our custodians are subject to regulatory regimes intended to protect customers in the event of a custodial bankruptcy, receivership or
similar insolvency proceeding, no assurance can be provided that our custodially held WLD will not become part of the custodian’s
insolvency estate if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if
we pursue any strategies to create income streams or otherwise generate funds using our WLD holdings, we would become subject to additional
counterparty risks. We will need to carefully evaluate market conditions, including price volatility as well as service provider terms
and market reputations and performance, among others, prior to implementing any such strategy, all of which could affect our ability
to successfully implement and execute on any such future strategy. These risks, along with any significant non-performance by counterparties,
including in particular the custodian or custodians with which we will custody substantially all of our WLD, could have a material adverse
effect on our business, prospects, financial condition, and operating results.

We
face risks relating to the use of third-party trading platforms in connection with our Worldcoin-focused strategy.

[NTD
– intend or already have?] We intend to use third-party trading platforms and over-the-counter brokers to purchase WLD for our
treasury. However, the entities with which we [NTD – have entered into?] enter into agreements may close, go bankrupt, or change
their business direction, and we may no longer be able to utilize them to implement our strategy. If we cannot find replacement counterparties,
it may severely adversely impact our strategy. We also may be forced to enter into agreements that do not have favorable terms, which
could have a material adverse effect on our business, financial condition or the results of our operations.

The
irreversibility of digital asset transactions exposes us to risks of theft, loss and human error, which could negatively impact our business.

Digital
asset transactions are not, from an administrative perspective, reversible without the consent and active participation of the recipient
of the transaction or, in theory, control or consent of a majority of the processing power on that digital asset network. Once a transaction
has been verified and recorded in a block that is added to the blockchain, an incorrect transfer of digital assets or a theft of digital