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"Trump's Crypto Reserve Sparks Storm: XRP, Cardano Tumble Amid Skepticism"

Coin WorldMonday, Mar 3, 2025 7:45 pm ET
1min read

Former U.S. President Donald Trump's proposal for a crypto reserve has sparked controversy and raised questions about the potential impacts on the crypto market and political landscape. The proposal prioritizes XRP, Cardano, and Solana, drawing concerns about the implications for Bitcoin and market integrity.

The announcement has ignited debate within crypto circles, with XRP and Cardano facing backlash as market reactions unfold. The decision to include these assets in the proposed reserve has been met with skepticism, with some analysts suggesting that political ties may have played a role in their selection.

The fallout from the announcement has been significant, with both XRP and Cardano experiencing substantial price declines. Reports indicate drops of over 20% shortly after the news broke, leading analysts to question the sustainability of these assets in a proposed national reserve.

Market analyst Rachel Kreitzer commented on the situation, stating, "Given the recent executive order, it's hard to see how Trump can realistically carry out these proposals without proper congressional backing. The market needs clarity."

Several stakeholders in the crypto community have criticized the administration's decision to back altcoins, emphasizing the necessity for a more stable and widely adopted asset like Bitcoin to form the basis of a U.S. reserve. A senior economist who declined to be named stated, "Without a clearly defined strategy or legislative support, these announcements seem hollow."

In examining Trump's choice of cryptocurrencies for the proposed reserve, many analysts speculate that political allegiance and donations may have played a pivotal role. XRP and Cardano's financial support of his campaign has led to increased scrutiny of whether these assets were selected based on their political ties rather than their technological merits or market viability.

Solana's connection to the current administration through various initiatives and the launch of the TRUMP meme coin only strengthens this narrative. Blockchain policy expert Mia Chen noted, "These choices suggest a potential favoritism rather than a calculated economic strategy."

The Republican-controlled Congress may pose additional obstacles to the proposal. With only a slim majority, some party members may reconsider the decision to allocate taxpayer funds towards potentially volatile assets. Furthermore, the hesitation of some fiscal conservatives could hinder the administration's ability to push this reserve through Congress.

Beyond mere selection, concerns about the effectiveness of supporting these cryptocurrencies in a national reserve context remain. SPACE ID's Harrison se

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foo-bar-nlogn-100
03/04
XRP and Cardano getting wrecked over this. If you caught the FOMO bug, don't say I didn't warn you. 🚀😬
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NoBicDeal
03/04
Crypto reserve = political circus, not investment haven
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Dosimetry4Ever
03/04
Meme coins like the TRUMP coin could outshine Solana if politics get too messy. Keep an eye on that dynamic.
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ConstructionOk6948
03/04
@Dosimetry4Ever You think meme coins could outpace Solana?
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bllshrfv
03/04
Solana's in, Bitcoin's out? Seems like Trump's playing favorites. Wonder if this reserve will end up just being a meme project.
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bmrhampton
03/04
@bllshrfv Yeah, seems like favoritism.
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throwaway0203949
03/04
Holding $BTC as my safe haven. Diversification with $ETH, but Trump's reserve seems more like a gamble than a strategy.
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CurlyDarkrai
03/04
XRP bagholders crying harder than my meme stocks
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johnnyko55555
03/04
Cardano's ADA getting wrecked, time to average down?
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rw4455
03/04
Regulatory backing is key. Without it, these proposals feel like hot air. Let's see if Trump can deliver beyond soundbites.
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Solidplum101
03/04
Trump's crypto reserve feels like a political HODL, not a solid investment strategy. What's next, $TSLA moonshots on feelz alone?
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thelastsubject123
03/04
@Solidplum101 What's your take on BTC in this mix?
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Wanderer_369
03/04
Trump's crypto reserve feels like a meme coin play. XRP and Cardano got the L, but Solana's got a shot if politics play nice.
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LividAd4250
03/04
Cardano's price dip makes me think: are we watching a market correction or just political noise?
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AdvantageNo3180
03/04
Skeptical of XRP's tech vs the hype. If it's just about political clout, we might see more turbulence. 🤔
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Ubarjarl
03/04
@AdvantageNo3180 XRP's tech vs hype is real. Political clout might shake things up more.
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MarshallGrover
03/04
@AdvantageNo3180 True, XRP's a gamble.
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