Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 78

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 78
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 on the smart contract, change how the smart contract receives external inputs and data, and
make other changes to the smart contract.

In some cases, smart contracts
can be controlled by one or more “admin 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 Financial are currently deployed on the XRP Ledger, and smart contracts relating to decentralized finance (“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.

<div align='center'>35

New competing digital assets may result in a reduction in demand for XRP, which could have a negative impact on the price of XRP and may have a negative impact on the performance of the Trust.</div>

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