Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 49

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 49
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 be susceptible to “front-running,” which refers to the process when someone uses technology or market advantage to get
prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized exchanges. By using
bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of the forthcoming price movement and make economic
gains at the cost of those who had introduced these transactions. The objective of a front runner is to buy a chunk of tokens at a low
price and later sell them at a higher price while simultaneously exiting the position. Front-running happens via manipulations of gas
prices or timestamps, also known as slow matching. To the extent that front-running occurs, it may result in investor frustrations and
concerns as to the price integrity of digital asset exchanges and digital assets more generally.

The market value of XRP is subject to momentum pricing.

The market value of XRP is
not based on any kind of claim, nor backed by any physical asset. Instead, the market value depends on the expectation of being usable
in future transactions and continued interest from investors. This strong correlation between an expectation and market value is the basis
for the current (and probable future) volatility of the market value of XRP and may increase the likelihood of momentum pricing.

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Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted by appreciation
in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which inflates prices
and leads to increased volatility. As a result, XRP may be more likely to fluctuate in value due to changing investor confidence in future
appreciation or depreciation in prices, which could adversely affect the price of XRP, and, in turn, an investment in the Trust.

The value of an XRP as represented
by the Pricing Benchmark may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to
greater volatility that could adversely affect the value of the Shares. Momentum pricing of XRP has previously resulted, and may continue
to result, in speculation regarding future appreciation or depreciation in the value of XRP, further contributing to volatility and potentially
inflating prices at any given time. These dynamics may impact the value of an investment in Trust.

Some market observers have
asserted that in time, the value of XRP will fall to a fraction of its current value, or even