Breaking News: The Controversial Inclusion of XRP, SOL, and ADA in US Crypto Reserve Raises Eyebrows

The US crypto industry has witnessed a significant development following President Donald Trump’s announcement on March 2. However, instead of widespread celebration, the decision has ignited a wave of backlash, not from traditional finance or regulators, but from within the crypto community itself. The crux of the controversy lies in the selection of assets for the newly proposed reserve.

Understanding the Controversy

During his election campaign, Trump made a bold pledge to establish a “national Bitcoin stockpile,” leading many to anticipate the inclusion of Bitcoin and, to a lesser extent, Ether. However, the addition of XRP, Solana, and Cardano has stirred division among industry stakeholders. These three cryptocurrencies come with their own set of challenges, including concerns over centralization and questions regarding their real-world adoption.

Proponents vs. Skeptics

Advocates of XRP, SOL, and ADA emphasize their technological innovations and market potential. Yet, skeptics argue that these assets lack the stability, institutional trust, and global acceptance necessary for a national reserve. The initial excitement surrounding the announcement saw all five cryptocurrencies experience a price spike, but this was short-lived as they quickly returned to pre-announcement levels, with only slight recoveries noted at the time of writing.

Interestingly, XRP and ADA managed to maintain their pre-announcement price levels, although they were not spared from significant volatility. Each of the three selected altcoins offers unique attributes, prompting discussions about their controversial inclusion in the reserve.

Market Dynamics and Performance

Ethereum continues to dominate the decentralized finance (DeFi) landscape, boasting approximately 52% of the total value locked (TVL) with $50.59 billion, according to DefiLlama. This figure does not account for its layer-2 networks, such as Base and Arbitrum, which enhance Ethereum’s scalability. In stark contrast, Solana holds a distant second place with a TVL of $7.32 billion.

Solana has often been dubbed an “Ethereum killer,” a term used for blockchains that aspire to rival Ethereum’s supremacy. With its high throughput capabilities, Solana can handle thousands of transactions per second, making it an attractive option for fund managers and political figures launching or endorsing cryptocurrency projects, particularly through memecoins.

Challenges Facing Solana

However, Solana’s recent memecoin boom has taken a chaotic turn. Livestreaming events aimed at inflating token prices, coupled with widespread scams, rug pulls, and bot-driven trading, have raised concerns about the sustainability of the sector. As skepticism mounts, the number of new token launches on Solana continues to dwindle.

Prominent voices within the industry have expressed concerns regarding Solana’s reliance on venture capital funding. National Security Agency whistleblower Edward Snowden criticized this dependence in November, suggesting it undermines the network’s decentralization. He described Solana as “born in prison,” implying that its ties to VC funding contradict the foundational principles of blockchain technology.

The Debate on Reserve Assets

“These assets, like any other tokens, don’t function as true reserve assets. Adding them to a US crypto reserve would be as arbitrary as including Nvidia stock in a strategic reserve,” stated Georgii Verbitskii, founder of TYMIO, in an interview with Cointelegraph. He further elaborated that while sovereign wealth funds, such as Norway’s, invest in equities for long-term returns, the purpose of a national reserve should be to rely on universally recognized, decentralized assets. In this context, Bitcoin emerges as the only logical choice for a national crypto reserve.

As the debate continues, the implications of including XRP, SOL, and ADA in the US crypto reserve remain to be seen. The industry must grapple with the balance between innovation and the need for stability and trust in the evolving landscape of digital assets.

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