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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decrease the price of digital assets generally or individually. Moreover, because digital assets, including TRX, have been in existence for a short period of time and are continuing to develop, there may be additional risks in the future that are impossible to predict as of the date of this Prospectus. Digital Assets Represent A New And Rapidly Evolving Industry, And The Value Of The Shares Depends On The Acceptance Of TRX. The first major blockchain-based digital asset, bitcoin, was launched in 2009. The Tron Network launched in 2018. In general, digital asset networks, including the Tron Network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. For example, the realization of one or more of the following risks could materially adversely affect the value of the Shares:

•	Banks and other established financial institutions may refuse to process funds for
TRX transactions; process wire transfers to or from digital asset trading platforms, TRX-related companies or service providers; or maintain
accounts for persons or entities transacting in TRX. As a result, the prices of TRX are largely determined by speculators and validators,
thus contributing to price volatility that makes retailers less likely to accept TRX in the future.

•	Banks may not provide banking services, or may cut off banking services, to businesses
that provide digital asset related services or that accept digital assets as payment, which could dampen liquidity in the market and damage
the public perception of digital assets generally or any one digital asset in particular, such as TRX, and their or its utility as a payment
system, which could decrease the price of digital assets generally or individually.

•	Certain privacy-preserving features have been or are expected to be introduced to
a number of digital asset networks. If any such features are introduced to the Tron Network, any trading platforms or businesses that
facilitate transactions in TRX may be at an increased risk of criminal or civil lawsuits, or of having banking services cut off if there
is a concern that these features interfere with the performance of anti-money laundering duties and economic sanctions checks.

•	Users, developers and validators may otherwise switch to or adopt certain digital
assets at the expense of their engagement

•	The Trust is not actively managed and will not have any formal strategy relating
to the development of the Tron Network and will not attempt to avoid or mitigate losses caused by declines in the price of TRX.

Due
To The Nature Of Private Keys, Transactions Involving TRX Are Irrevocable And Stolen Or Incorrectly Transferred TRX May Be Irretrievable.
As A Result, Any Incorrectly Executed TRX Transactions Could Adversely Affect An Investment In The Trust.

Transactions
involving TRX are typically not reversible without the consent and active participation of the recipient of the transaction. Once a transaction
has been signed with private keys, verified and recorded in a block that is added to the TRX Blockchain, an incorrect transfer of cryptocurrency,
such as TRX, or a theft of TRX generally will not be reversible and the Trust may not be capable of seeking compensation for any such
transfer or theft. Although the Trust’s transfers of TRX will regularly be made to or from the Trust’s accounts at the TRX
Custodian or an additional TRX custodian (the “Additional TRX Custodian”), it is possible that, through computer or human
error, or through theft or criminal action, the Trust’s TRX could be transferred from the Trust’s account at the TRX Custodian
or the Additional TRX Custodian in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts. To the extent that
the Trust is unable to successfully seek redress for such error or theft, such loss could adversely affect an investment in the Trust.

The
custody of the Trust’s TRX is handled by the TRX Custodian or the Additional TRX Custodian, and the transfer of TRX to and from
liquidity providers normally takes place through the TRX Custodian’s Clearing Services and is directed by the Administrator and
the Transfer Agent. The Sponsor has evaluated the procedures and internal controls of the Trust’s TRX Custodian and the Additional
TRX Custodian to safeguard the Trust’s TRX holdings, as well as the procedures and internal controls of the Trust’s Administrator.

However,
it is possible that, through computer or human error, or through theft or criminal action, the Trust’s TRX could be transferred
from the Trust TRX Account or Clearing Account at the TRX Custodian or the Additional TRX Account at the Additional TRX Custodian in incorrect
amounts or to unauthorized third parties, or to incorrect destination addresses on the TRX Blockchain.

Alternatively,
if the TRX Custodian’s and the Additional TRX Custodian’s internal procedures and controls are inadequate to safeguard the
Trust’s TRX holdings, and the Trust’s private key(s) is (are) lost, destroyed or otherwise compromised and no backup of the
private key(s) is (are) accessible, the Trust will be unable to access its TRX, which could adversely affect an investment in the Shares
of the Trust. In addition, if the Trust’s private key(s) is (are) misappropriated and the Trust’s TRX holdings are stolen,
including from or by the TRX Custodian or the Additional TRX Custodian, the Trust could lose some or all of its TRX holdings, which could
adversely impact an investment in the Shares of the Trust.

Such
events have occurred in connection with digital assets in the past. For example, in September 2014, the Chinese digital asset exchange
Huobi announced that it had sent approximately 900 bitcoin and 8,000 litecoin (worth approximately $400,000 at the prevailing market prices
at the time) to the wrong customers. To the extent that the Trust is unable to seek a corrective transaction with such third party or
is incapable of identifying the third party which has received the Trust’s TRX through error or theft, the Trust will be unable
to revert or otherwise recover incorrectly transferred TRX. The Trust will also be unable to convert or recover its TRX transferred to
uncontrolled accounts. To the extent that the Trust is unable to seek redress for such error or theft, such loss could adversely affect
the value of the Shares.

Disruption Of The Internet May Affect the Tron Network, Which May Adversely Affect The TRX Industry And An Investment In The Trust.

The
Tron Network relies on the Internet. A significant disruption of Internet connectivity (i.e., one that affects large numbers of users
or geographic regions) could disrupt the Tron Network’s functionality and operations until the disruption in the Internet is resolved.
A disruption in the Internet could adversely affect an investment in the Trust or the ability of the Trust to operate.

The
Tron Network’s Decentralized Governance Structure May Negatively Affect Its Ability To Grow And Respond To Challenges.

The
governance of decentralized networks, such as the Tron Network, is based on voluntary participation and open competition. The Tron Network
does not have a central decision-making authority or any formal mechanism through which binding governance decisions are adopted. Instead,
proposals are implemented through decentralized consensus, primarily via the Super Representative voting process. A lack of consensus
among TRX stakeholders may adversely affect the network’s utility, adaptability and long-term development, including the resolution
of technical or scaling challenges.

Historically,
the development of the Tron Network’s core protocol has been led by contributors affiliated with its founding entities and later
maintained through open-source developer communities. While core developers may propose upgrades to the Tron Network’s source code,
implementation ultimately depends on whether Super Representatives adopt such proposals and whether the broader community of users and
developers accept and utilize the upgraded protocol. Core developers cannot compel adoption of proposed changes or require validators,
developers or users to support continued participation in the network.

The
decentralized nature of TRX governance may make it difficult to implement significant changes or coordinate responses to future network
challenges, particularly where sustained, focused effort is required over time. If governance participants are unable to achieve sufficient
consensus or if Super Representatives fail to implement or support critical upgrades, the Tron Network may face protocol stagnation or
loss of competitiveness. This could reduce developer and user engagement, divert activity to competing blockchain ecosystems or reduce
speculative demand, any of which could adversely affect the value of TRX. In extreme cases, a breakdown in governance consensus could
result in a network fork or fragmentation of the community, with material consequences for the stability, usability and value of TRX.

The
Open-Source Structure Of The Tron Network Protocol Means That The Core Developers And Other Contributors Are Generally Not Directly Compensated
For Their Contributions In Maintaining And Developing The Tron Network Protocol. A Failure To Properly Monitor And Upgrade The Tron Network
Protocol Could Damage The Tron Network And An Investment In The Trust.