US President Donald Trump made a surprise announcement on Sunday about the creation of a national strategic reserve.
At this point, Trump announced on Sunday that he plans to establish a reserve that includes Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA). Trump claimed that this move will allow the US to become the Cryptocurrency Capital of the world.
Although the announcement was initially met with enthusiasm by markets, they cooled on Monday amid concerns about its implications.
While the addition of other altcoins to the reserve besides Bitcoin and Ethereum was criticized, industry experts argued that the altcoins in question lacked the developer activity and decentralization features present in BTC and ETH.
Nic Carter, General Partner at Castle Island Ventures, criticized Trump’s decision on XRP, ADA, and SOL, saying, “The government’s job is not to run a fake crypto hedge fund. It’s not their job to pick winners and losers.”
Ethereum and Solana Make Sense Apart from Bitcoin!
SPACE ID senior manager Harrison Seletsky said he supports Trump’s diversified crypto reserve plan but that the choices are wrong. Seletsky said that Ethereum and Solana’s inclusion in the reserve makes sense given their strong and growing developer activity.
However, the famous name, who argued that it does not make sense to include XRP and ADA in the reserve, said that XRP and ADA have smaller TVL than ETH and SOL.
“In my eyes, the inclusion of XRP and ADA in the reserve delegitimizes the idea of including cryptocurrencies like Bitcoin, Ethereum, and Solana, which are the mainstays of the industry, in the reserve.”
Alexander Blume, CEO of Two Prime Digital Assets, also criticized the inclusion of XRP, ADA, and SOL in the reserves, saying that these are tech companies that happen to own cryptocurrencies.
“These altcoins are very centralized and the sense of ownership is very intense. These altcoins are constantly changing and adapting to the market, whereas Bitcoin is a decentralized product with no owner or control group and is more similar to gold.”
Trump Did It For His Own Token!
Jean Rausis, co-founder of DeFi platform SMARDEX, shared the same opinion, while stating that Trump’s XRP, ADA, SOL announcement was not planned.
“The announcement of the US crypto reserve, which will include XRP, SOL, and ADA, is a clear sign that President Trump is trying to pump his own money. There is no benefit to having these assets in the strategic reserve.
“It is clear that Bitcoin and Ethereum are much more suitable for reserves, but BTC and ETH are touted as afterthoughts.”
Only Bitcoins!
As a result, industry leaders have argued that Bitcoin and Ethereum make more sense for the US national reserve.
Bitwise CEO Hunter Horsely argued that it was only right to include Bitcoin:
“I had imagined the Strategic Reserve would just be Bitcoin. That makes the most sense to me. Many crypto assets have value, but we’re talking about a reserve here, not a US investment portfolio. That’s why Bitcoin is arguably the best store of value in the digital age.”
*This is not investment advice.
