The POP Social continues to be developed.
Any events or circumstances which adversely affect the Company or any of its Affiliates may have a corresponding adverse effect on the POP Social that is being further developed, including but not limited to the development, structuring the POP Social. Such adverse effects would correspondingly have an impact on the utility, liquidity, and the trading price of the Tokens.
The Company or its Affiliates may be materially and adversely affected if it fails to effectively manage its operations as its business develops and evolves, which would have a direct impact on its ability to develop, maintain or operate the POP Social and/or develop, structure and/or license any Token functionality.
The financial technology and cryptocurrency industries in which the Company competes have grown rapidly over the past few years and continue to evolve in response to new technological advances, changing business models, shifting regulations and other factors. As a result of this constantly changing environment, the Company may face operational difficulties in adjusting to the changes, and the sustainability of the POP Social will depend on the ability of the Company or its Affiliates to manage its operations, ensure that it hires qualified and competent employees, and provides proper training for its personnel. As the POP Social develops, the Company and/or its Affiliates must also expand and adapt its operational infrastructure. The POP Social will in part rely on its blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology. All of these systems, tools, and skill sets represent complex, costly, and rapidly changing technical infrastructure. In order to demonstrate continued ability to effectively manage technical support infrastructure for the POP Social that is being further developed and the future functionality of the Tokens, the Company and/or its Affiliates will need to continue to upgrade and improve its data systems and other operational systems, procedures, and controls. These upgrades and improvements will require a dedication of resources and are likely to be complex and increasingly rely on hosted computer services from third parties that the Company and/or its Affiliates do not or will not control. If the Company and/or its Affiliates are unable to adapt their systems and organisation in a timely, efficient, and cost-effective manner to accommodate changing circumstances, its business, financial condition and/or results of operations may be adversely affected. If the third parties whom the Company and/or its Affiliates rely on are subject to a security breach or otherwise suffer disruptions that impact the services the Company and/or its Affiliates use, the integrity and availability of its internal information could be compromised, which may consequently cause the loss of confidential or proprietary information and/or economic loss. The loss of financial, labour or other resources, and any other adverse effect on the Company and/or its Affiliates, financial condition and/or operations, would have a direct adverse effect on the ability of the Company and/or its Affiliates to develop maintain or operate the POP Social and/or to develop, structure and/or license the anticipated Token functionality. Any adverse effects affecting the POP Social or technology are likely to also adversely impact the utility, liquidity, and trading price of the Tokens.
The Company may experience system failures, unplanned interruptions in its network or services, hardware or software defects, security breaches or other causes that could adversely affect the Company’s infrastructure network, and/or the POP Social that is being further developed.
The Company and/or its Affiliates are not able to anticipate when there would be occurrences of hacks, cyber-attacks, distributed denials of service or errors, vulnerabilities or defects in: the POP Social that is being further developed, in the smart contracts on which the Company and/or its Affiliates or the POP Social relies, or on the Ethereum or any other blockchain. Such events may include, for example, flaws in programming or source code leading to exploitation or abuse thereof. The Company and/or its Affiliates may not be able to detect such hacks, cyber-attacks, distributed denials of service errors vulnerabilities or defects in a timely manner, and may not have sufficient resources to efficiently cope with multiple service incidents happening simultaneously or in rapid succession.The network or services of the Company and/or its Affiliates, which would include the POP Social that is being further developed and, if successfully structured, developed, licensed and launched, the Token functionality, could be disrupted by numerous events, including natural disasters, equipment breakdown, network connectivity downtime, power losses, or even intentional disruptions of its services, such as disruptions caused by software viruses or attacks by unauthorised users, some of which are beyond the control of the Company and/or its Affiliates. There can be no assurance that cyber-attacks, such as distributed denials of service, will not be attempted in the future or that the security measures of the Company and/or its Affiliates will be effective. The Company and/or its Affiliates may be prone to attacks on its infrastructure intended to steal information about its technology, financial data or user information or take other actions that would be damaging to the Company and/or holders of the Tokens. Any significant breach of the security measures of the Company and/or its Affiliates or other disruptions resulting in a compromise of the usability, stability, and security of the POP Social that is being further developed may adversely affect the utility, liquidity and/or trading price of the Tokens.
The Company and/or its Affiliates may in the future be dependent in part on the location and data centre facilities of third parties.
The future infrastructure network of the Company and/or its Affiliates may be established in whole or in part through servers which they own and/or houses at the location facilities of third parties, and/or servers that it rents at data centre facilities of third parties. If the Company and/or its Affiliates are unable to renew their data facility leases on commercially reasonable terms or at all, the Company and/or its Affiliates may be required to transfer its servers to a new data centre facility, and may incur significant costs and possible service interruption in connection with the relocation. These facilities are also vulnerable to damage or interruption from, among others, natural disasters, arson, terrorist attacks, power losses, and telecommunication failures.Additionally, the third-party providers of such facilities may suffer a breach of security as a result of third-party action, employee error, malfeasance or otherwise, and a third party may obtain unauthorised access to the data in such servers. The Company and/or its Affiliates and the providers of such facilities may be unable to anticipate these techniques or to implement adequate preventive measures.
General global market and economic conditions may have an adverse impact on the operating performance, results of operations and/or cash flows of the Company and/or its Affiliates.
The Company and/or its Affiliates could continue to be affected by general global economic and market conditions. Challenging economic conditions worldwide have from time to time, contributed, and may continue to contribute, to slowdowns in the information technology industry at large. Weakness in the economy could have a negative effect on the Company and/or its Affiliates’ business, operations and financial condition, including decreases in revenue and operating cash flows, and inability to attract future equity and/or debt financing on commercially reasonable terms. Additionally, in a down-cycle economic environment, the Company and/or its Affiliates may experience the negative effects of a slowdown in trading and usage of the POP Social that is being further developed and may delay or cancel the development, structuring, licensing and/or launch of the anticipated Token functionality.Suppliers on which the Company and/or its Affiliates rely for servers, bandwidth, location and other services could also be negatively impacted by economic conditions that, in turn, could have a negative impact on the operations or expenses of the Company and/or its Affiliates. There can be no assurance, therefore, that current economic conditions or worsening economic conditions or a prolonged or recurring recession will not have a significant, adverse impact on the Company’s business, financial condition and results of operations, and hence, the POP Social that is being further developed and/or the ability to develop, structure, license and/or launch any Token functionality. Any such circumstances would then correspondingly negatively impact the utility, liquidity, and/or trading price of the Tokens.
The Company and/or its Affiliates or the Tokens may be affected by newly implemented regulations.
Distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities are generally unregulated worldwide, but numerous regulatory authorities across jurisdictions have been outspoken about considering the implementation of regulatory regimes which govern distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities. The Company and/or its Affiliates or the Tokens may be affected by newly implemented regulations relating to distributed ledger technologies, businesses and activities as well as cryptocurrencies and cryptocurrency-related businesses and activities, including having to take measures to comply with such regulations, or having to deal with queries, notices, requests or enforcement actions by regulatory authorities, which may come at a substantial cost and may also require substantial modifications to the POP Social that is being further developed and/or the anticipated Token functionality. This may impact the appeal or practicality or functionality of the POP Social that is being further developed and/or the anticipated Token functionality for users and result in decreased usage of and demand for the POP Social and the Tokens. Further, should the costs (financial or otherwise) of complying with such newly implemented regulations exceed a certain threshold, maintaining the POP Social that is being further developed and/or developing, structuring, licensing and/or launching the Token functionality may no longer be commercially viable, and the Company and/or its Affiliates may opt to discontinue the POP Social that is being further developed and/or the anticipated Token functionality, and/or the Tokens. Further, it is difficult to predict how or whether governments or regulatory authorities may implement any changes to laws and regulations affecting distributed ledger technology and its applications, including the POP Social that is being further developed and/or the anticipated Token functionality, and/or the Tokens.The Company and/or its Affiliates may also have to cease operations in a jurisdiction that makes it illegal to operate in such jurisdiction, or make it commercially unviable or undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. In scenarios such as the foregoing, the utility, liquidity, and/or trading price of Tokens will be adversely affected and/or Tokens may cease to be traded.
There may be unanticipated risks arising from the Tokens.
Cryptographic tokens such as the Tokens are a relatively new and dynamic technology. In addition to the risks included in the above discussion of risk factors, there are other risks associated with your purchase, holding, and use of the Tokens, including those that the Company and/or its Affiliates cannot anticipate. Such risks may further appear as unanticipated variations or combinations of the risks discussed above.