TL;DR
- Donald Trump announced the creation of a Strategic Crypto Reserve, which will include Bitcoin, Ethereum, XRP, Solana, and Cardano.
- The decision has been heavily criticized by Bitcoin maximalists, who argue that the selection of altcoins goes against the principle of decentralization.
- The move could have political motivations, aiming to gain the trust of the crypto community.
President Donald Trump’s announcement of a Strategic Crypto Reserve has shaken both the financial and crypto ecosystems. According to his post on Truth Social, this initiative will include Bitcoin, Ethereum, XRP, Solana, and Cardano. The news had an immediate impact on the market, with XRP surging by 37%, Solana by 23%, and Cardano skyrocketing by 68%. However, not everyone is celebrating the former president’s decision.
Bitcoin Maximalists Criticize the Altcoin Selection
Samson Mow, CEO of Jan3 and a prominent Bitcoin advocate, was among the first to express his disagreement on X (formerly Twitter).
“Bitcoin may be rising, but it’s a sad day for the U.S. if they decide to bet on shitcoins at a state level,”
Mow wrote, also reminding people that Trump recently launched his own memecoin.
Other experts, such as “The Bitcoin Standard” author Saifedean Ammous, also criticized the decision, arguing that including altcoins distracts from Bitcoin’s true value as a store of wealth.
Peter Schiff, a well-known Bitcoin critic and gold advocate, also weighed in on Trump’s announcement. On X, he commented:
“I understand the logic behind a Bitcoin reserve. Bitcoin is digital gold, better than physical gold. So creating a Bitcoin reserve makes sense. But what’s the logic behind including XRP? Why the hell do we need that?”
Even Brian Armstrong, CEO of Coinbase, expressed doubts about the selection of crypto assets.
“The best choice would simply be Bitcoin as the successor to gold. If diversification is necessary, the most logical approach would be a market cap-weighted index,”
Financial Strategy or Political Move?
Beyond the criticism, some analysts believe Trump’s move has a strong political component. With the crypto community faced stricter regulations under the Biden administration, Trump might be seeking support from discontented voters. In states like Texas and Florida, where Bitcoin and cryptocurrencies have gained popularity, this announcement could strengthen his electoral base for future elections and improve his current image.
As the debate continues, the key question remains: Is Trump genuinely pushing crypto adoption, or is he merely capitalizing on public frustration? One thing is certain—his initiative has already made waves in the market and could mark a turning point in the relationship between the U.S. government and cryptocurrencies.
