Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 75

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 75
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 guarantee that the Sponsor will choose the network and the associated digital asset that would ultimately end up as the most valuable fork. Any of these events could therefore adversely impact the value of the Shares.

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Forks may also occur as a
digital asset network community’s response to a significant security breach. For example, in July 2016, Ethereum underwent
a hard fork between the Layer 1 Ethereum network and a new digital asset running on a “forked” branch of the network, Ethereum
Classic, as a result of the Ethereum community’s response to a significant security breach. In June 2016, an anonymous hacker
exploited a smart contract running on the Ethereum blockchain to syphon approximately $60 million of ether held by a distributed
autonomous organization into a segregated account. In response to the hack, and after a contentious debate, most participants in the
Ethereum community elected to adopt a hard fork that effectively reversed the hack, and this network constitutes the Layer 1 Ethereum
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