SEC Filing Document

Company: Canary Staked TRX ETF
Ticker: 
CIK: 2064768
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-04-18
Accession Number: 0001999371-25-004423
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2064768/000199937125004423/canary-s1_041825.htm

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to bring about; • governmental or regulatory actions by, or investigations or litigation in, countries around the world targeting well-known decentralized applications or smart contracts that are built on the Tron Network, or other developments or problems, and associated publicity, involving or affecting such decentralized applications or smart contracts; • increased competition from other forms of digital assets or payment services, including digital currencies constituting legal tender that may be issued in the future by central banks, or digital assets meant to serve as a medium of exchange by major private companies or other institutions; • increased competition from other blockchain networks combining smart contracts, programmable scripting languages, and an associated runtime environment, with blockchain-based recordkeeping, particularly where such other blockchain networks are able to offer users access to a larger consumer user base, greater efficiency, reliability, or processing speed, or more economical transaction processing fees than the Tron Network;

•	investors’ expectations with respect to interest rates, the rates of inflation
of fiat currencies or TRX, and digital asset exchange rates;

•	consumer preferences and perceptions of TRX specifically and digital assets generally,
the Tron Network relative to competing blockchain protocols, and TRX relative to competing digital assets;

•	negative events, publicity, and social media coverage relating to the digital assets and blockchain technology
industry;

•	fiat currency withdrawal and deposit policies on digital asset trading platforms;

•	the liquidity of digital asset markets and any increase or decrease in trading volume or market making
on digital asset markets;

•	business failures, bankruptcies, hacking, fraud, crime, government investigations,
or other negative developments affecting digital asset businesses, including digital asset trading platforms, or banks or other financial
institutions and service providers which provide services to the digital assets industry;

•	the use of leverage in digital asset markets, including the unwinding of positions,
“margin calls”, collateral liquidations and similar events;

•	investment and trading activities of large or active consumer and institutional users, speculators, miners,
and investors in TRX;

•	a “short squeeze” resulting from speculation on the price of TRX, if
aggregate short exposure exceeds the number of shares available for purchase;

•	an active derivatives market for TRX or for digital assets generally;

•	monetary policies of governments, legislation or regulation, trade restrictions,
currency devaluations and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of TRX as a form
of payment or the purchase of TRX on the digital asset markets;

•	global or regional political, economic or financial conditions, events and situations, such as the novel
coronavirus outbreak;

•	fees associated with processing a TRX transaction and the speed at which TRX transactions are settled;

•	the maintenance, troubleshooting, and development of the Tron Network including by miners and developers
worldwide;

•	the ability for the Tron Network to attract and retain miners to secure and confirm transactions accurately
and efficiently;

•	ongoing technological viability and security of the Tron Network and TRX transactions,
including vulnerabilities against hacks and scalability;

•	financial strength of market participants;

•	the availability and cost of funding and capital;

•	the liquidity and credit risk of digital asset trading platforms;

•	interruptions in service from or closures or failures of major digital asset trading
platforms or their banking partners, or outages or system failures affecting the Tron Network;

•	decreased confidence in digital assets and digital assets trading platforms;

•	poor risk management or fraud by entities in the digital assets ecosystem;

•	increased competition from other forms of digital assets or payment services; and

•	the Trust’s own acquisitions or dispositions of TRX, since there is no limit on the number of TRX
that the Trust may acquire.

Although returns
from investing in TRX have at times diverged from those associated with other asset classes to a greater or lesser extent, there can be
no assurance that there will be any such divergence in the future, either generally or with respect to any particular asset class, or
that price movements will not be correlated. In addition, there is no assurance that TRX will maintain its value in the long, intermediate,
short, or any other term. In the event that the price of TRX declines, the Sponsor expects the value of the Shares to decline proportionately.

The price of the
Shares of the Trust are represented by the Pricing Benchmark that may also be subject to momentum pricing due to speculation regarding
future appreciation in value of TRX, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing
typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future
appreciation in value, if any. The Sponsor believes that momentum pricing of TRX has resulted, and may continue to result, in speculation
regarding future appreciation in the value of TRX, inflating and making the Pricing Benchmark more volatile. As a result, TRX may be more
likely to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Pricing
Benchmark and could adversely affect the value of the Trust.

The Trust is not
actively managed and does not and will not have any strategy relating to the development of the Tron Network, nor will the Trust seek
to avoid or mitigate losses from declines in the TRX price. Furthermore, the impact of the expansion of the Trust’s TRX holdings
on the digital asset industry and the Tron Network is uncertain. A decline in the popularity or acceptance of the Tron Network, or the
value of TRX, would harm the value of the Trust.

Digital Asset
Networks Face Significant Scaling Challenges And Efforts To Increase The Volume and Speed Of Transactions May Not Be Successful.

Many digital
asset networks, including the Tron Network, face significant scaling challenges due to the fact that public blockchains generally
face a tradeoff between security and scalability. One means through which public blockchains achieve security is decentralization,
meaning that no intermediary is responsible for securing and maintaining these systems. For example, a greater degree of
decentralization generally means a given digital asset network is less susceptible to manipulation or capture. Achieving
decentralization may mean that every single node on a given digital asset network is responsible for securing the system by
processing every transaction and every single full node is responsible for maintaining a copy of the entire state of the network.
However, this may involve tradeoffs from an efficiency perspective, and impose constraints on throughput. A digital asset network
may be limited in the number of transactions it can process by the fact that all validators participate in validating in each block
and the capabilities of each single fully participating node. Many developers are actively researching and testing scalability
solutions for public blockchains that do not necessarily result in lower levels of security or decentralization, such as off-chain
payment channels. Off-chain payment channels would allow parties to transact without requiring the full processing power of a
blockchain.

As of April 16, 2025, the
Tron Network processed approximately 70.25 transactions per second (TPS) in real-time, with a maximum recorded TPS of 272 and a theoretical
maximum of 2,516 TPS. In an effort to increase the volume of transactions that can be processed on a given digital asset network, many
digital assets are being upgraded with various features to increase the speed and throughput of digital asset transactions.

As corresponding
increases in throughput lag behind growth in the use of digital asset networks, average resource costs and settlement times may increase
considerably. Since inception, Tron Network transaction costs have been based on a variable model that uses Bandwidth and Energy resources,
rather than fixed gas fees. If a user lacks sufficient resources, TRX is burned to complete the transaction. Increased resource costs
and delayed transaction finality could preclude certain use cases for TRX (e.g., micropayments) and could reduce demand for, and the price
of, TRX, 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 Tron Network transactions will be effective,
or how long such mechanisms will take to become effective, which could adversely impact the value of the Shares.