Crypto researcher SMQKE has released a follow-up tweet further elaborating on his assertion that XRP holders “own a slice of Ripple’s future cashflows.”
In this latest post, SMQKE provides a structured analogy comparing XRP and its utility within the Ripple ecosystem to the dynamics of a pharmaceutical startup and a drug patent. The explanation offers a conceptual framework for understanding XRP’s value proposition without conflating the token with equity or security instruments.
In his previous tweet, SMQKE claimed that XRP purchasers are effectively buying into the future licensing revenue Ripple could generate from its transaction settlement technology. To reinforce this idea, he cited the documented excerpt from a 2025 academic text titled The Future of Crypto Regulation.
‼️XRP HOLDERS OWN A SLICE OF RIPPLE’S FUTURE CASHFLOWS‼️
Read closely.
“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.”📈💰
Of course it’s… pic.twitter.com/kADEC1GbRT
— SMQKE (@SMQKEDQG) May 19, 2025
The document states, “What XRP entitles the holder to is the token itself, which is integral to executing transactions on the Ripple settlement network,” and further explains that “XRP should increase in value, as the full functionality of the system requires the token.”
The Drug Patent Analogy
Building on this foundational logic, SMQKE’s new tweet emphasizes that XRP’s value is intrinsically tied to the success and continued development of Ripple’s software layer, Ripplenet. He said, “Buying XRP is like buying a share in a drug patent.”
He points out that while neither the patent nor the technology behind it is a security, the value of both depends on the success of the company that promotes and develops them.
In this analogy, Ripple is portrayed as the pharmaceutical startup, XRP as the drug patent, and the Ripplenet software as the drug itself or its applications. He adds that XRP holders function similarly to those who invest in the patent, not because they receive guaranteed returns, but because the value of their holdings is entirely contingent upon the broader system gaining traction. Blockchain technology, he explains, is the infrastructure that allows these interests to be held and exchanged.
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Supporting Documentation from Legal Scholarship
The excerpt from the legal academic article that SMQKE references strengthens the basis of his analogy. It explicitly states that XRP is “integral to executing transactions on the Ripple settlement network” and that its value may rise proportionally with the system’s adoption.
Furthermore, the text notes, “The XRP token embodies, in effect, a licensing right for the Ripple transactional system.” This interpretation frames XRP as an operational necessity rather than a speculative asset disconnected from utility.
Clarifying XRP’s Distinction from Traditional Securities
SMQKE’s updated message reinforces the view that XRP does not represent an equity stake in Ripple, nor does it provide entitlement to dividends or ownership in the company. However, its utility within the transaction system makes it a critical component of Ripple’s business model. In effect, the token’s worth is inherently linked to the operational success of the network it powers.
This documented analogy provides an interpretive tool for those seeking clarity on XRP’s economic structure. While XRP is not a traditional security, its functional necessity to the Ripple ecosystem and its potential to appreciate due to that necessity position it as a unique digital asset within the crypto landscape.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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