Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 80

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 80
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. Increased fees and decreased settlement speeds could preclude use cases for XRP and could reduce demand for and the price of XRP, which could adversely impact the value of the Shares.

There is no guarantee that
any of the mechanisms in place or being explored for increasing the scale of settlement of XRP Ledger transactions will be effective,
or how long these mechanisms will take to become effective, which could adversely impact an investment in the Shares. Additionally, because
the XRP Ledger also relies on cross-chain communications to process transactions between blockchains, delays can occur if there are bottlenecks
in transaction finality on the source or destination chain or if XRP miners take longer than expected to process transactions.

Smart contracts are new and their ongoing development and operation may result in problems or be subject to errors or hacks, which could reduce the demand for XRP or cause a wider loss of confidence in the XRP Ledger, either of which could have an adverse impact on the value of XRP.

Since smart contracts typically
cannot be stopped or reversed, vulnerabilities in their programming (i.e., coding errors) can have damaging effects. For instance, coding
errors may potentially create vulnerabilities that allow an attacker to drain the funds associated with the smart contract, cause issues
or render the protocol unusable. Hackers have exploited vulnerabilities in various smart contract implementations, that have resulted
in the loss of digital assets from accounts. 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.

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 finance (“DeFi”) are currently deployed on the XRP Ledger, and smart contracts relating to 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