External threats, including market competition, regulatory changes, and technological advancements, pose significant challenges to BR1: INFINITE's sustainability and growth in the Web3 gaming space. This report will assess the extent of these threats and evaluate how well-positioned the company is to mitigate these risks.

• The competitive Web3 gaming landscape and the entry of traditional gaming companies threaten BR1: INFINITE's market position.
• Regulatory uncertainties, particularly around NFTs and crypto-based games, pose challenges to the game's tokenomics and play-to-earn mechanics.
• Volatility in cryptocurrency markets impacts the game's economy and player earnings potential, raising concerns about economic sustainability.
• Player fatigue with current play-to-earn models across Web3 games could reduce long-term engagement with BR1: INFINITE.
• Security vulnerabilities, such as potential smart contract exploits, could harm player trust and retention compared to competitors with stronger safeguards.