Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 79

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 79
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 keys” or users with special privileges, or “super users”. These users
may have the ability to unilaterally make changes to the smart contract, enable or disable features on the smart contract, change how
the smart contract receives external inputs and data, and make other changes to the smart contract.

Many applications associated
with decentralized finance (“DeFi”) are currently deployed on the XRP Ledger, and smart contracts relating to DeFi applications
currently represent a significant source of demand for XRP. For smart contracts that hold a pool of digital asset reserves, smart contract
super users or admin key holders may be able to extract funds from the pool, liquidate assets held in the pool, or take other actions
that decrease the value of the digital assets held by the smart contract in reserves. Even for digital assets that have adopted a decentralized
governance mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens can be concentrated
in the hands of a small group of core community members, who would be able to make similar changes unilaterally to the smart contract.
If any such super user or group of core members unilaterally make adverse changes to a smart contract, the design, functionality, features
and value of the smart contract, its related digital assets may be harmed. In addition, assets held by the smart contract in reserves
may be stolen, misused, burnt, locked up or otherwise become unusable and irrecoverable. Super users can also become targets of hackers
and malicious attackers. Furthermore, the underlying smart contracts may be insecure, contain bugs or other vulnerabilities, or otherwise
may not work as intended. Any of the foregoing could cause users of the DeFi application to be negatively affected, or could cause the
DeFi application to be the subject of negative publicity. Because DeFi applications may be built on the XRP Ledger and represent a significant
source of demand for XRP, public confidence in the XRP Network itself could be negatively affected, and the value of XRP could decrease.

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New competing digital assets may pose a challenge to XRP’s current market position, which could have a negative impact on the price of XRP and may have a negative impact on the performance of the Trust.

XRP faces significant competition from other digital assets, as well as from other technologies or payment forms, such as Swift, ACH, remittance networks, credit cards and cash. There is no guarantee that XRP