Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 77

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 77
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or undiscovered problems, flaws, or security risks, create problematic economic incentives which incentivize behavior which has a negative
effect on the XRP Ledger’s users, validators, or the XRP Ledger as a whole, or otherwise adversely affect, the speed, security,
usability, or value of the XRP Ledger or XRP. If a fork caused operational problems for either post-fork network or blockchain,
the digital assets associated with the affected network could lose some or all of their value. Furthermore, the Sponsor will, as
permitted by the terms of the Trust Agreement, determine which network is generally accepted as the XRP Ledger and should therefore be
considered the appropriate network for the Trust’s purposes. The Sponsor will base its determination on a variety of then relevant
factors, including, but not limited to, the Sponsor’s beliefs regarding expectations of the core developers of XRP, users, service
providers, businesses, miners and other constituencies, as well as the actual continued acceptance of, mining power on, and community
engagement with, the XRP Network. There is no 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.

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