Risk Reminder

Investing in cryptocurrencies and digital tokens, including Ghost Coin, carries inherent risks. By participating in the Ghost Coin ecosystem or acquiring GHOST tokens, you acknowledge and accept the following risks:

• Volatility: The value of cryptocurrencies and tokens can be highly volatile and subject to rapid fluctuations. The price of GHOST tokens may experience significant ups and downs, and there is no guarantee of maintaining or increasing its value over time.
• Regulatory Uncertainty: Recently, the U.S. Securities and Exchange Commission (SEC) has stated that most meme coins, which are typically inspired by internet memes and driven by market speculation, are not considered securities under U.S. federal law. As Ghost Coin is a meme-inspired cryptocurrency, it is believed to fall under this category. However, the regulatory landscape for cryptocurrencies is constantly evolving, and changes in laws, regulations, or government policies may still adversely affect the development, adoption, and value of Ghost Coin and its ecosystem. Investors should be aware that this classification could change, and new regulations could be introduced that impact Ghost Coin.
• Not a Security: Ghost Coin is designed as a meme-inspired cryptocurrency and should be treated as a collectible or a speculative asset, similar to other meme coins. It does not generate any yield or convey rights to future income, profits, or assets of a business. Therefore, it should not be considered as an investment in the traditional sense, and there is no expectation of profit from the efforts of others.
• No Legal Protections: Since Ghost Coin is not considered a security, buyers and holders of GHOST tokens are not protected by federal securities laws. This means that transactions involving GHOST tokens do not have the same legal safeguards as those involving traditional securities. Additionally, GHOST tokens are not backed by any government or central bank and are not FDIC-insured. There is no guarantee of stability or value preservation by any governmental authority.
• Technology Risks: Ghost Coin and its associated platforms rely on blockchain technology, smart contracts, and other advanced technologies. Vulnerabilities, bugs, or attacks on these underlying technologies could potentially disrupt the Ghost Coin ecosystem and lead to loss of funds.
• Liquidity Risks: The liquidity of GHOST tokens may vary, and there is no assurance of an active secondary market for trading. Holders of GHOST tokens may face difficulties in selling or converting their tokens into other cryptocurrencies or fiats.
• Project Risks: The development and success of Ghost Coin depend on the efforts of its development team. However, the value of GHOST tokens is driven by market demand and speculation, not by any guaranteed returns or promises from the team. Delays, changes, or failures in the project’s roadmap may affect the utility and adoption of GHOST tokens, but there is no assurance that such efforts will lead to any specific financial outcomes for token holders.
• Cybersecurity Risks: Wallets, exchanges, and other platforms that support GHOST tokens may be vulnerable to hacks, theft, or other forms of cybercrime. Loss of private keys or unauthorized access to wallets can result in the permanent loss of GHOST tokens.
• Fraud and Illegal Activities: While the SEC does not consider meme coins as securities, any fraudulent offer and sale of GHOST tokens may still be subject to enforcement action or prosecution by other federal or state agencies. It is crucial to be cautious of scams and to only engage with reputable platforms and services.

By participating in the Ghost Coin ecosystem, you acknowledge that you have carefully considered these risks and are willing to assume full responsibility for any potential losses. It is important to conduct your own research, exercise prudence, and never invest more than you can afford to lose.

This risk reminder is not exhaustive, and additional risks may exist. Ghost Coin and its team do not provide any financial, legal, or investment advice. Always consult with qualified professionals before making any investment decisions.

Rationale for Updates

The updates are based on the following considerations:

• SEC’s Statement on Meme Coins: On February 27, 2025, the SEC clarified that most meme coins are not securities, comparing them to collectibles due to their speculative nature and lack of utility (Staff Statement on Meme Coins). Given Ghost Coin’s description as a “meme-inspired cryptocurrency,” it is believed to fall under this category, reducing the need for securities registration but also removing securities law protections for buyers.
• Additional Legal Disclaimers: Standard disclaimers for crypto projects include statements about no government backing, no FDIC insurance, and the token not being legal tender. These are incorporated to ensure comprehensive coverage, as seen in examples like Legal Disclaimer | Ledger.
• Risk of Fraud: The SEC’s statement notes that fraudulent activities related to meme coins can still be prosecuted by other agencies, necessitating a clear warning about scams and the importance of due diligence, aligning with Financial and Legal Disclaimer – CryptoCoin.News