Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 66

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 66
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 protocol maintained by a group of core developers and other contributors. As the XRP Ledger protocol is not sold
or made available subject to licensing or subscription fees and its use does not generate revenues for its development team, the core
developers are generally not compensated for maintaining and updating the source code for the XRP Ledger protocol. Consequently, there
is a lack of financial incentive for developers to maintain or develop the XRP Ledger and the core developers may lack the resources
to adequately address emerging issues with the XRP Ledger protocol. Although the XRP Ledger is currently supported by the core developers,
there can be no guarantee that such support will continue or be sufficient in the future. Alternatively, entities whose interests are
at odds with other participants in the XRP Ledger may seek to obtain control over the XRP Ledger by influencing core developers. For
example, malicious actors could attempt to bribe a core developer or group of core developers to propose certain changes to the network
core developers.

In addition, a bad actor
could also attempt to interfere with the operation of the XRP Ledger by attempting to exercise a malign influence over a core developer.
To the extent that material issues arise with the XRP Ledger protocol and the core developers and open-source contributors are unable
to address the issues adequately or in a timely manner, the XRP Ledger and an investment in the Trust may be adversely affected.

Anonymity and illicit financing risk.

Although transaction details
of peer-to-peer transactions are recorded on the XRP Ledger, a buyer or seller of digital assets on a peer-to-peer basis directly on the
XRP Ledger may never know to whom the public key belongs or the true identity of the party with whom it is transacting. Public key addresses
are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to identify users. In
addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque nature of the market poses asset
verification challenges for market participants, regulators and auditors and gives rise to an increased risk of manipulation and fraud,
including the potential for Ponzi schemes, bucket shops and pump and dump schemes. Digital assets have in the past been used to facilitate
illicit activities. If a digital asset was used to facilitate illicit activities, businesses that facilitate transactions in such digital
assets could be at increased risk of potential criminal or civil lawsuits, or of having banking or other services cut off, and such digital
asset could be removed from digital asset exchanges. Any of the aforementioned