Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 82

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 82
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’ willingness to trade on trading venues that rely on stablecoins
and could impact the price of XRP, and in turn, an investment in the Shares.

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Validators may cease participating in validating activities because they are provided no direct financial incentive to participate or because certain jurisdictions may limit or otherwise regulate validating activities, which could negatively impact the price of XRP and the value of the Shares.

Unlike many other blockchain
networks, validators on the XRP Ledger are not directly compensated for their participation in the consensus process. Running a validator
on the XRP Ledger is generally considered a voluntary contribution to the health and decentralization of the network. Participants run
validators for reasons other than direct financial gain, such as supporting the network’s decentralization, ensuring its security,
or for reputational benefits within the XRP community. However, because there is no financial incentive for entities or individuals to
maintain validators, there is no guarantee that such entities or individuals will continue to do so. Additionally, entities or individuals
running validators in certain jurisdictions may be limited or prohibited from continuing these activities as a result of regulation or
governmental decree.

Validators ceasing operations
or participation in the consensus mechanism would make the XRP Ledger more vulnerable to malicious actors obtaining sufficient control
to alter the blockchain and hinder transactions. Any reduction in confidence in the confirmation process and security of the XRP Ledger
may adversely affect the Trust’s investments in XRP. To the extent that a significant number of entities or individuals stop
running validators, there would be serious negative consequences to the XRP Ledger’s functionality, security and overall existence.

Electricity usage.

Concerns have been raised
about the electricity required to secure and maintain digital asset networks. Although measuring the electricity consumed by the process
of securing and maintaining digital asset networks is difficult because these operations are performed by various machines with varying
levels of efficiency, the process consumes a significant amount of energy. Driven by concerns around energy consumption and the impact
on public utility companies, various states and cities have implemented, or are considering implementing, moratoriums on mining activity
in their jurisdictions.

Unlike proof-of-work and proof-of-stake
systems, the consensus protocol utilized by the XRP Ledger is extremely lightweight in terms of energy usage. Notwithstanding, the operations
of digital asset networks, including the XRP Ledger, can consume significant amounts of electricity, which may have a negative environmental
impact and give rise to public opinion against allowing, or government regulations restricting,