The XRP community received a wave of renewed optimism following comments from a legal researcher who shared insights from a recently published regulatory document.
According to crypto analyst SMQKE, the document affirms that XRP’s value is tied directly to Ripple’s growth and continued network adoption.
Titled The Future of Crypto Regulation, the legal publication outlines how XRP is not merely a tradable asset but a required component to operate within Ripple’s settlement system. SMQKE highlighted an essential line of the document and said that the XRP token is, in a sense, a licensing right to the Ripple transactional system.
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The classification also diverges XRP from conventional financial securities. Unlike stock or bonds, XRP does not give its owners any rights to own or share the company’s profits. Instead, it offers one access to a system in which the token is required to effect transactions.
The document continues to stipulate, “What XRP gives the holder is the token itself, which is necessary to transact on the Ripple settlement network.”
SMQKE added emphasis that XRP is not a speculative asset but a major catalyst of network functions. He stated that XRP is necessary to conduct transactions on the Ripple network and will appreciate as the network is adopted.
This interpretation underlines his bullish view, especially for long-term holders.
XRP Holders Positioned to Benefit From Ripple’s Success
A notable takeaway from the documentation is the suggestion that XRP holders stand to benefit directly from Ripple’s ongoing success. The report suggests that as Ripple’s infrastructure gains wider institutional use, demand for XRP should increase due to its essential role in powering transactions.
Additionally, the document compares XRP to a licensing model, similar to a patented product that drives company value through continued use. XRP functions as the operational token that fuels Ripple’s ecosystem. The expansion of the Ripple network should result in the reflection of value to the XRP owners.
This optimistic view emphasizes the fact that XRP is positioned as a utility token whose strategic value is increasing. The value of the token is no longer tied to short-term speculation but instead directly linked to the long-term growth and international inclusion of Ripple itself.
The legal review presented by SMQKE strengthens the fact that the holders of XRP are directly associated with Ripple’s success. Now that the token is needed to conduct transactions on the system, any increase in network adoption could equate to utility and value upside for XRP holders.
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