📃Risk Factors

The risks associated with purchasing the EDNS Tokens are numerous and significant and there are other risks associated with your acquisition of, holding and/or use of the EDNS Tokens, including those that the Issuer cannot anticipate. Such risks may further materialize as unanticipated variations or combinations of the aforementioned risks. In this section, we set out some of the major known risks associated with the EDNS Tokens. The risks set out below are not intended to be comprehensive. The Issuer is not responsible for your purchase decisions and any associated consequences. You should conduct full due diligence on the Issuer and its affiliates, as well as understand our overall framework, mission and vision for the EDNS Platform prior to participating in the same and/or acquiring the EDNS Tokens. IF YOU DECIDE TO ACQUIRE THE EDNS TOKENS OR PARTICIPATE IN THE EDNS PLATFORM, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:

A trading market for the EDNS Tokens may not develop and you may be subject to additional transfer restrictions

There may not be a trading market developed for the EDNS Tokens without the involvement of market makers to make a market for the EDNS Tokens by standing ready to buy or sell the EDNS Tokens at any time at the prevailing market price(s). It may take considerably longer for buyers and sellers to be matched with one another. Thus, there may be a reduced liquidity for the EDNS Tokens, making it more difficult to enter or exit positions and adding to the costs and risks of trading. As a result, the trading of the EDNS Tokens may not be possible or may be greatly hindered. In addition, in the event that the EDNS Tokens remain untradeable for a significant period of time or indefinitely, the value of the EDNS Tokens would be materially adversely affected.

Furthermore, the transfer of the EDNS Tokens may only be performed in a manner that satisfies the applicable laws, including applicable Hong Kong anti-money laundering rules and regulations. Even if such transfer is legally permitted, by purchasing the EDNS Tokens, you agree to additional transfer restrictions (if any) and shall not be able to effect transfer if these restrictions or requirements are not complied with. You should therefore be prepared to hold your EDNS Tokens indefinitely.

Prices of digital assets are extremely volatile. Fluctuations in the price of digital assets could materially and adversely affect the Issuer, and the EDNS Tokens may also be subject to significant price volatility

The price of cryptocurrencies, such as Bitcoin and Ether, and other digital assets have historically been subject to dramatic fluctuations and are highly volatile, and the market price of the EDNS Tokens may also be highly volatile. Several factors may influence the market price, if any, of the EDNS Tokens, including but not limited to the following:

(i) the ability of the EDNS Tokens to trade in a secondary market, if at all;

(ii) the availability of any digital asset exchange for the EDNS Tokens;

(iii) global digital asset and token supply;

(iv) global digital asset and token demand, which can be influenced by the growth of retail merchants’ and commercial businesses’ acceptance of digital assets such as cryptocurrencies as payment for goods and service, the security of online digital asset of digital asset is safe and secure, and the regulatory restrictions on their use;

(v) purchasers’ expectation with respect to the rate of inflation;

(vi) changes in the software, software requirements or hardware requirements underlying the EDNS Tokens;

(vii) interest rates;

(viii) currency exchange rates, including the rates at which digital assets may be exchanged for fiat currencies;

(ix) government-backed currency withdrawal and deposit policies of digital asset exchanges;

(x) interruptions in service from or failure of major digital asset exchanges on which digital assets and tokens are traded;

(xi) monetary policies of governments, trade restrictions, currency devaluation and revaluations;

(xii) regulatory measures, if any, that affect the use of digital assets and tokens;

(xiii) global or regional political, economic or financial events and situations; and

(xiv) expectations among digital assets participants that the value of tokens or other digital assets will soon change.

A decrease in the price of a single digital asset may cause volatility in the entire digital asset and token industry and may affect other digital assets including the EDNS Tokens. For example, a security breach that affects purchasers’ or users’ confidence in Bitcoin or Ether may affect the industry as a whole and may also cause the prices of the EDNS Tokens and other digital assets to fluctuate. Such volatility in the price of the EDNS Tokens may result in significant loss over a short period of time.

In addition, the terms of the EDNS Tokens may also lead to additional price volatility. The operations and financial position of the Issuer will also directly impact the price of the EDNS Tokens which may create additional volatility based on the Issuer’s future performance.

The blockchain industry is new, rapidly changing and subject to uncertainties, which may have an adverse material effect on the EDNS Tokens

The further development and acceptance of blockchain networks, which are part of a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of blockchain networks and blockchain assets would have an adverse material effect on the successful development and adoption of the EDNS Tokens.

Furthermore, the growth of the blockchain industry in general, as well as the blockchain networks on which the EDNS Tokens will rely, are subject to a high degree of uncertainty. The factors affecting the further development of the cryptocurrency and crypto-security industry, as well as blockchain networks, include, without limitation:

(i) worldwide growth in the adoption and use of cryptocurrencies, crypto-securities and other blockchain technologies;

(ii) government and quasi-government regulation of cryptocurrencies, crypto-securities and other blockchain assets and their use, or restrictions on or regulation of access to and operation of blockchain networks or similar systems;

(iii) the maintenance and development of the open-source software protocol of cryptocurrency or crypto-securities networks;

(iv) changes in consumer demographics and public tastes and preferences;

(v) the availability and popularity of other forms or methods of buying and selling goods and services, or trading assets including new means of using government-backed currencies or existing networks;

(vi) general economic conditions and the regulatory environment relating to cryptocurrencies and crypto-securities; and

(vii) a decline in the popularity or acceptance of cryptocurrencies or other blockchain-based tokens would adversely affect the Issuer’s results of operations.

The cryptocurrency and crypto-securities industries as a whole have been characterized by rapid changes and innovations and are constantly evolving. Although they have experienced significant growth in recent years, the slowing or stopping of the development, general acceptance and adoption and usage of blockchain networks and blockchain assets may deter or delay the acceptance and adoption of the EDNS Tokens.

You may not be able to obtain all information that you would want regarding the EDNS Tokens and the EDNS Platform

Whilst the Issuer may release information relating to the EDNS Tokens and the EDNS Platform from time to time, the EDNS Tokens do not have any information rights attached to them, and you may not be able to obtain all the information that you would want regarding the EDNS Tokens and the EDNS Platform. As a result of these difficulties, as well as other uncertainties, you may not have accurate or accessible information about the Issuer, the EDNS Tokens and the EDNS Platform.

The business execution of the EDNS Project requires a high degree of professional expertise. It is uncertain whether the roadmap and deployment of technological components of the EDNS Platform can be fully implemented

The implementation of the EDNS Project roadmap and deployment of its related technological components requires a high degree of professional business and software engineering experience. While the developers have a proven track-record of software engineering and business development, it is not certain whether the developers can fully deliver on the technical milestones set forth in the roadmap.

Ability to transact or resell the EDNS Tokens may be hindered by changes in market which affect the market value, liquidity, availability and transferability of the EDNS Tokens

You may be unable to sell or otherwise transact in the EDNS Tokens at any time, or for the price you paid to purchase the EDNS Tokens. By purchasing the EDNS Tokens, you acknowledge, understand and agree that: (a) the EDNS Tokens may have no value; (b) there is no guarantee or representation of liquidity for the EDNS Tokens; (c) the EDNS Tokens are not transferable until the completion of their respective token sales and after the relevant lockup periods; and (d) the Issuer and its affiliates are not and shall not be responsible for or liable for the market value of the EDNS Tokens, the transferability and/or liquidity of the EDNS Tokens and/or the availability of any market for the EDNS Tokens through third parties or otherwise.

EDNS Token transactions may become irreversible and the losses due to fraudulent or accidental transactions may not be recoverable

If the EDNS Tokens become tradeable on any digital asset exchange or peer-to-peer transactions, transactions in the EDNS Tokens may be irreversible, and, accordingly, you may lose all of your purchase in the EDNS Tokens in a variety of circumstances, including in connection with fraudulent or accidental transactions, technology failure or cyber-security breaches. If applicable, real-time settlement would further increase the risk that correction of trading errors may be impossible and losses due to fraudulent or accidental transactions may not be recoverable.

Cryptocurrency exchanges and wallets, and to a lesser extent, the blockchain network itself, may suffer from hacking and fraud risks, which may adversely erode user confidence in cryptocurrencies which would decrease the value of a demand for the EDNS Tokens

Cryptocurrencies transactions are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. Hackers can target exchanges and token transactions, to gain access to thousands of accounts and digital wallets where tokens are stored. Cryptocurrencies have suffered from hacking and cyber-theft as such incidents have been reported by several cryptocurrency exchanges and miners, highlighting concerns about the security of cryptocurrencies and therefore affecting its demand and price. As a result, the EDNS Tokens may be subject to expropriation and/or theft. Hackers or other malicious groups or organizations may attempt to interfere with the EDNS Tokens or the smart contracts on which they rely in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing.

In addition, because the Avalanche network rests on open-source software and the smart contracts of the EDNS Tokens are based on the Avalanche blockchain, there is the risk that Avalanche smart contracts may contain intentional or unintentional bugs or weaknesses which may negatively affect the EDNS Tokens or result in the loss of your EDNS Tokens or the loss of your ability to access or control your EDNS Tokens. In the event of such a software bug or weakness, there may be no remedy and you are not guaranteed any remedy, refund or compensation.

Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to the EDNS Tokens and/or the EDNS Platform by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

All of the above may adversely affect the operation of the networks of the EDNS Tokens which would erode user confidence in the EDNS Tokens, which would negatively affect demand.

Losing access to the private key(s) associated with EDNS Tokens will result in losses beyond the Issuer’s control

The EDNS Tokens purchased by you may be held by you in your digital wallet or vault, which requires a private key, or a combination of private keys, for access. Accordingly, loss of requisite private key(s) associated with your digital wallet or vault storing the EDNS Tokens will result in loss of such EDNS Tokens, access to your EDNS Token balance and/or any initial balances in blockchains created by third parties. Moreover, any third party that gains access to such private key(s), including by gaining access to login credentials of a hosted wallet or vault service you use, may be able to misappropriate your EDNS Tokens. The Issuer shall not be responsible for any such losses. Furthermore, the EDNS Tokens can be claimed in bad intention by any person who successfully gains access to your wallet, email or if applicable, the account which you have registered on any digital asset exchange. This can be as a result of deciphering or cracking your password or private key, phishing scams and/or other hacking techniques. Subsequently, the EDNS Tokens may be sent to anyone and such remittance is not revocable or reversible.

In light of the above, it is recommended that you, as a holder of EDNS Tokens, should take appropriate security measures to safeguard your wallet (including but not limited to the use of two-factor authentication). You are responsible for the security of your wallet and email at all times. The Issuer is under no obligation to issue replacement of EDNS Tokens in the event that any EDNS Tokens or private key is lost, stolen, malfunctioning, destroyed or otherwise inaccessible for any reason.

There may be flaws in the source code adopted in our operation, compromising the predictability, usability, stability and/or security of the EDNS Tokens

While we adopt quality assurance procedures to best ensure the source codes as accurately as possible to reflect their intended operation, the flawlessness of the source codes cannot be guaranteed. They may contain bugs, defects, inconsistencies, flaws or errors, which may cause disability to certain functionality, create vulnerabilities or cause instability. Such flaws may compromise the predictability, usability, stability, and/or security of the EDNS Tokens.

Avalanche technology may be superseded and it is uncertain whether the Avalanche platform will become the predominant protocol adopted globally

While today, in our view, Avalanche blockchain technology presents one of the most promising advances in blockchain technology, there is no guarantee that Avalanche will not be supplanted by competing protocols that improve upon the Avalanche technology. The Avalanche technology is open-source, meaning that anyone can copy and disseminate the same code with modifications. It is not known whether the Avalanche platform will become the predominant protocol adopted by global industry. If Avalanche is surpassed or superseded, then this could impact the EDNS Platform and the EDNS Tokens as usage and adoption declines.

The Issuer may modify or stop the EDNS Token Sale at any time

You acknowledge and understand that the Issuer may modify the timing, sale price and number of EDNS Tokens available for sale at any time during the EDNS Token Sale. You further acknowledge and understand that the Issuer reserves the right to terminate the EDNS Token Sale at any time and withdraw any unsold EDNS Tokens from the EDNS Token Sale. If the EDNS Token Sale has been terminated prematurely, the EDNS Tokens purchased by you may not be transferable.

The regulatory framework and status of cryptographic tokens, digital assets and blockchain technology is uncertain across jurisdictions

The regulatory status of cryptographic tokens, digital assets and blockchain technology is unclear or unsettled in many jurisdictions. It is difficult to predict how or whether governmental authorities will regulate such technologies. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may create new regulations with respect to such technology and its applications, including the EDNS Tokens and/or the EDNS Platform. It is likewise difficult to predict how or whether any governmental authority may make changes to existing laws, regulations and/or rules that will affect cryptographic tokens, digital assets, blockchain technology and its applications. Such changes could negatively impact the EDNS Tokens and/or the EDNS Platform in various ways, including, for example, through a determination that EDNS Tokens are regulated financial instruments that require registration. The Issuer may cease the distribution of the EDNS Tokens, the development of the EDNS Platform or cease operations in a jurisdiction in the event that governmental actions make it unlawful or commercially undesirable to continue to do so.

The Issuer and the EDNS Tokens are subject to risks associated with legal, political or other conditions or developments regarding holding, using or disposing of cryptocurrencies

There are significant uncertainties regarding future regulations pertaining to the holding, using or disposing of cryptocurrencies, which may adversely affect the EDNS Tokens. While certain cryptocurrency has gradually gained more market acceptance and attention, it remains anonymous and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict, control or ban the mining, transfer, use and holding of cryptocurrencies. Our existing policies and procedures for the detection and prevention of money laundering and terrorism-funding activities through our business activities have only been adopted in recent years and may not completely eliminate instances in which we or our products may be used by other parties to engage in money laundering and other illegal or improper activities. We cannot assure you that there will not be a failure in detecting money laundering or other illegal or improper activities which may adversely affect our reputation, the EDNS Tokens, the Issuer’s financial condition and results of operations.

EDNS Tokens are not legal tender, are not backed by the government, and accounts and value balances are not subject any statutory required insurance or protection schemes

EDNS Tokens are not legal tender, are not backed by the government, and accounts and value balances are not subject to protections. Therefore, the EDNS Tokens may not be as protected as other forms of assets. Acquisition of the EDNS Tokens is made at your own risk.

We cannot assure you that governmental authorities will not take action against the Issuer and its operations

As noted above, the industry in which the Issuer operates is new and constantly evolving, and may be subject to heightened oversight and scrutiny, including possible enforcement actions. There can be no assurance that governmental authorities will not examine the operations of the Issuer and/or pursue enforcement actions against the Issuer. Such governmental activities may or may not be the result of targeting the Issuer in particular. All of this may subject the Issuer to judgments, settlements, fines or penalties, or cause the Issuer to restructure its operations and activities or to cease offering certain products or services, all of which could harm the Issuer 's reputation or lead to higher operational costs, which may in turn have a material adverse effect on the EDNS Tokens and/or the development of the EDNS Platform.

We cannot assure you that the EDNS Tokens will be able to successfully list on any digital asset exchange

The listing of the EDNS Tokens on any digital asset exchange will be subject to various applicable laws and regulations as imposed by the jurisdiction that the digital asset exchange is located in and to rules or terms and conditions imposed by the digital asset exchange. There is no guarantee that the Issuer would be able to meet all the requirements, in particular that most jurisdictions are still in the process of formulating and developing their local laws and jurisdictions applicable to the trading of cryptocurrencies and/or security tokens. Whilst we anticipate to maintain close discussion with the relevant regulators and the digital asset exchange in meeting such requirements, there is no guarantee that our application for listing would be accepted and approved, and therefore trading markets for the EDNS Tokens may never be formed.

Maintaining the listing of the EDNS Tokens is subject to the Issuer’s continuing compliance with the terms and conditions of the digital asset exchange, as well as the relevant laws and regulations in the jurisdiction at which the digital asset exchange resides

The Issuer is required to observe and comply with the terms of the terms and conditions of the digital asset exchange in order to maintain the listing of the EDNS Tokens on the digital asset exchange. This may also require us to observe and comply with any laws, regulations, rules, policies and codes in force in the jurisdiction tin which the digital asset exchange is located. Any changes in such terms and conditions, laws, regulations, rules, policies, codes may render compliance difficult or even impossible for the Issuer. This may have an impact on the Issuer’s ability to maintain listing status of the EDNS Tokens and may ultimately lead to the delisting of the EDNS Tokens from the digital asset exchange(s) that the EDNS Tokens are trading on.

The EDNS Token Sale may be subject to changes in the public policy and regulatory landscape of token sales in general, which may result in potential delays or postponements of the EDNS Token Sale

EDNS Tokens are not investment products. Rather, EDNS Tokens serve a specific function within EDNS Platform, which is the means to access discounted services in EDNS Platform. Without EDNS Tokens, the general public may not access the EDNS Platform to acquire its services. There is also no expectation of future profit or gain from the acquisition of the EDNS Tokens. The EDNS Tokens do not represent (i) any equity or other ownership interest in the Issuer, (ii) any rights to dividends or other distribution rights from the Issuer or (iii) any voting or other governance rights in the Issuer. For these and other reasons, we believe the EDNS Token Sale does not constitute a public offering of securities subject to prospectus registration requirements. However, public policy towards token sales is changing, and it is conceivable that regulators may in the future seek to broaden the scope of regulation of token sales. This could make token sales subject to registration requirements in any jurisdictions. If the EDNS Token Sale becomes subject to registration requirements, this would delay or potentially postpone the EDNS Token Sale indefinitely.

The tax characterization and treatment of EDNS Tokens are uncertain

The tax characterizations of the EDNS Tokens are uncertain. You must seek your own tax advice in connection with a purchase in the EDNS Tokens. A purchase of the EDNS Tokens may result in adverse tax consequences, including withholding taxes, income taxes and tax reporting requirements. Furthermore, the use of the EDNS Platform services or personal gain via the EDNS Tokens by any means may or may not be subject to local income tax, capital gain taxes, VAT or other forms of taxes. This uncertainty in tax legislation may expose you to unforeseen future tax consequences associated with the use of the EDNS Platform services, and/or the trading of the EDNS Tokens for capital gains. You should consult with and must rely upon the advice of your own professional tax advisors.

Transfer of the EDNS Tokens out of local jurisdiction to overseas exchanges may be subject to strict capital controls in certain jurisdictions

Certain jurisdictions, such as the People’s Republic of China impose strict controls on the cross-border flow of capital. You, as holder of the EDNS Tokens, may be subject to these regulations and/or arbitrary enforcement of such regulations at any time. This would make the transfer of the EDNS Tokens out of the local jurisdiction to overseas exchanges an unlawful activity exposing the holder of EDNS Tokens to government fines or other regulatory sanction.

Implications of Anti-Money Laundering and Counter-Terrorist Financing (“AML/CTF”) regulations

A series of regulations to combat terrorist financing and money laundering activities are in place in various jurisdictions. Many other countries have enacted similar legislation to control the flow of capital for such illicit activities. The use of cryptocurrencies by bad actors would breach such regulations. Any illicit use of the EDNS Tokens or the EDNS Platform services could seriously impact the global reputation of the EDNS Platform. In such event, it is conceivable that this could trigger scrutiny by AML/CTF regulators and potentially cause significant disruption to the distribution and circulation of the EDNS Tokens.

Intense Market Competition

There are currently a large number of projects and token offerings in the current blockchain technology field, creating intense market competition and project operation pressures. Whether the EDNS Project can break through many other highly competitive will depend on the expertise and capabilities of the EDNS Team, vision planning, funding conditions, institutional support, market and industry trends etc., and may be affected by the multitude of competitors and even oligarchs in the market. There is also the possibility of the EDNS Project facing vicious competition, which may adversely affect the value of the EDNS Tokens and the viability of the EDNS Project as a whole. There can be no guarantee of the success of the EDNS Project and the EDNS Tokens.

Project coordination and marketing risks: The development team will spare no effort to achieve the development goals in the Whitepaper and extend the EDNS Project's potential for growth. However, because of the unforeseen factors in the overall development trend of the industry, the existing business models and general planning ideas may not align with the market demand, resulting in unsatisfactory performance. At the same time, this Whitepaper may be amended from time to time as the details of the EDNS Project are updated. If the updated details of the EDNS Project are not obtained in time by the participants or the public may not be aware of the latest status or progress, resulting in asymmetric information. In addition, such information asymmetry and imperfect understanding of the details EDNS Project (as may be updated from time to time) may impair the development of the EDNS community and ecosystem, hindering the long-term success of the EDNS Project.