A recent excerpt from a legal study has drawn attention within the crypto community, discussing the potential link between XRP purchases and future revenues of Ripple.
Overview of the Study
An excerpt from the William & Mary Law Review discusses how purchasers of XRP effectively acquire a portion of Ripple's anticipated future cash flows from licensing its technology. 'At the end of the day, XRP purchasers have bought, effectively, a slice of the future cashflows that Ripple would make from the licensing of its transaction settlement system,' the study states.
Challenges in Classifying XRP
The study also points out the complexities of classifying XRP as a security. Despite possible arguments for XRP being treated as a security, Ripple emphasizes that there are no direct contractual rights between the company and XRP holders, and that XRP is used for more than just speculation.
Community Reactions
SMQKE's tweet received mixed reactions from the community. Some users find the information unconvincing, citing recent court battles. One user commented, 'That would make XRP a security so I doubt this is real – we just dealt with a four-year lawsuit about this topic.' Concerns also arise about how these discussions may affect future asset classifications in digital space.
The dialogue surrounding the proposed ideas related to XRP and its business model may lead to new questions and debates regarding the nature of crypto assets and their compliance with established legal criteria.
