• The President’s plan to back a U.S. crypto reserve, surprisingly without Bitcoin, has ignited a firestorm of discussion.
• Initial excitement sent XRP and ADA prices soaring, but the party ended quickly, leading some to cry foul and allege a politically motivated pump-and-dump.

Donald Trump’s surprising move to champion a U.S. crypto reserve has undeniably thrust digital currencies into the limelight, although perhaps not in the way many in the crypto world anticipated.

Instead of solely embracing Bitcoin [BTC], as he had hinted at before, Trump’s vision unexpectedly includes XRP, Cardano [ADA], and Solana [SOL]. This unexpected pivot has set the crypto community ablaze, sparking intense debate among industry leaders and everyday traders alike.

At first, the market responded with a jolt of optimism. Prices for these select altcoins jumped as speculation ran rampant about what this government endorsement could mean. However, this initial burst of enthusiasm proved to be fleeting, quickly giving way to doubt.

Before the week was even properly underway, the gains evaporated, with XRP and ADA taking a significant hit, plummeting into double-digit losses.

Now, prominent figures in the crypto space aren’t just questioning whether Trump’s plan is even achievable; they’re also digging deeper into his underlying motivations. Is this a genuine strategic financial play, or are political connections and campaign donations pulling the strings behind the scenes?

Uncertainty Swirls Around Trump’s Crypto Reserve

The President’s unexpected focus on an altcoin-heavy crypto reserve triggered immediate ripples of volatility across the market. Traders feverishly speculated about what impact a government-backed project supporting particular cryptocurrencies could have.

However, the path to making such a reserve a reality is far from clear, riddled with legislative obstacles.

Currently, the U.S. government’s Bitcoin holdings are primarily the result of seizures from law enforcement actions. To actively purchase more crypto assets, especially altcoins, would require the often slow and complex process of congressional approval.

Given the widespread skepticism regarding crypto regulation that exists across both sides of the political aisle, the chances of this initiative actually coming to fruition remain very much up in the air.

XRP and ADA Price Rollercoaster: Initial Surge and Rapid Plunge

In the immediate aftermath of Trump’s announcement, XRP and ADA experienced dramatic price increases. This surge was fueled by speculative buying and the hopeful belief that federal backing could lend significant long-term credibility to these cryptocurrencies.

As the weekend unfolded, both assets gathered considerable upward momentum, with XRP and ADA both showcasing impressive double-digit percentage gains.

However, by the time Monday rolled around, the excitement had completely vanished. XRP took a dramatic tumble, plummeting 18% from its weekend peak, while ADA experienced an even steeper decline of 23%.

This rapid sell-off strongly suggests that traders viewed the initial price jump as nothing more than a short-lived speculative opportunity, rather than a fundamental shift in the market’s landscape.

The price action played out like a textbook case of ‘buy the rumor, sell the news.’ Investors were quick to capitalize on the initial wave of enthusiasm, only to cash out their profits just as quickly when doubts about the reserve’s viability began to surface.

Industry Backlash Grows as Trump’s Reserve Faces Stiff Scrutiny

Trump’s choice to prioritize XRP and ADA, notably leaving out Bitcoin, has triggered a wave of strong criticism from influential figures in the crypto industry. They are raising serious questions about both the reasoning and the practicality of this proposal.

Many are arguing that favoring altcoins with relatively limited mainstream acceptance – especially when compared to established giants like Ethereum or Bitcoin – seriously undermines the overall credibility of the proposed reserve.

Prominent Bitcoin advocate Samson Mow dismissed the plan outright, bluntly stating:

“Either this will realistically become a Bitcoin reserve, or we are heading down a dangerous path into even greater market instability.”

Former BitMEX CEO Arthur Hayes echoed this skepticism, pointing out that without the necessary green light from Congress or a clear financial mechanism to actually fund these crypto purchases, the plan essentially holds no water.

Source: X

Beyond just the practicality of the idea, speculation is mounting that Trump’s selection of XRP, ADA, and SOL may be rooted in political considerations.

It’s worth noting that Ripple, the company behind XRP, previously donated a substantial $5 million to support Trump’s inauguration. Furthermore, Solana has developed strong connections with the President’s base, evidenced by the launch of the TRUMP memecoin on its blockchain.

Therefore, rather than being a purely strategic financial maneuver, the inclusion of these specific assets might be a calculated move designed to gain favor and support from particular crypto communities.

The outcry against Trump’s proposal has intensified further, with critics now openly suggesting that his announcement might have been nothing more than a carefully orchestrated pump-and-dump scheme.

Prominent economist Peter Schiff has even called for a formal congressional investigation, raising concerns about the timing of Trump’s Sunday afternoon social media posts and questioning whether insiders received privileged advance notice.

“Donald Trump, seemingly now the self-proclaimed crypto President, may have just facilitated the biggest crypto rug pull in history. A thorough Congressional investigation is now absolutely necessary to uncover the truth behind this alleged pump and dump operation.”

He further questioned,

“Who was actually behind the two Sunday afternoon posts on the President’s Truth Social account? Who had prior knowledge of the initial post, and exactly when were they informed about the specific wording and planned timing of its release?”

Source: X

Adding another layer of intrigue, Bloomberg analyst Joe Weisenthal highlighted that despite Trump’s explicit endorsement, XRP’s inability to maintain its price gains suggests a broader market sentiment of skepticism regarding its lasting role in a government-backed reserve.