Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 77

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 77
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network. However, a minority of users continued to develop the original blockchain, now referred to as “Ethereum Classic”,
which is not backwards-compatible with the Layer 1 Ethereum network and is considered a forked branch, with the native digital asset
on that blockchain now referred to as Ethereum Classic, or ETC. ETC now trades on several digital asset platforms. Following the
July 2016 hard fork between the Ethereum and Ethereum Classic networks, new security concerns surfaced. Replay attacks, in which
transactions from one network were rebroadcast to nefarious effect on the other network, plagued Ethereum exchanges through at least
October 2016. An Ethereum exchange announced in July 2016 that it had lost 40,000 Ethereum Classic, worth about $100,000 at
that time, as a result of replay attacks. Similar replay attack concerns occurred in connection with the Bitcoin Cash and Bitcoin Satoshi’s
Vision networks split in November 2018, and security concerns could similarly surface in connection with future hard forks.

In the future, if an accidental or unintentional fork similar to what happened within the Geth client in November 2020 were to happen to the XRP Ledger, such a fork could lead to nodes, users and validators losing confidence in the XRP Ledger and abandoning it in favor of other blockchain protocols. Furthermore, it is possible that, in a future unplanned fork, a substantial number of nodes, users and validators could adopt an incompatible version of the digital asset while resisting community-led efforts to merge the two chains, resulting in a permanent fork. Any of these events could cause XRP to decline in value, adversely affecting the price of Shares.

Protocols may also be cloned. Unlike a fork, which modifies an existing blockchain, and results in two competing networks, each with the same genesis block, a “clone” is a copy of a protocol’s codebase, but results in an entirely new blockchain and new genesis block. Tokens are created solely from the new “clone” network and, in contrast to forks, holders of tokens of the existing network that was cloned do not receive any tokens of the new network. A “clone” results in a competing network that has characteristics substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone. A clone may also adversely affect the price of XRP at the time of announcement or adoption or subsequently. For example, on November 6, 2016, Rhett Creighton, a Z