(Bloomberg) – Donald Trump’s announcement that the United States will include three less known digital tokens in its strategic cryptography reserve have been welcomed by skepticism in industry, investors questioning the project merits and the parts it has selected by abandoning some of their initial gains.
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Trump said on Truth Social on Sunday that XRP, Sol and Ada tokens will be included in the reserve, as well as bitcoin and ether. The news has triggered an immediate crypto rally, providing relief to a class of active ingredients freshly on its worst month since 2022.
However, the initial euphoria quickly gave way to questions about everything, from the feasibility of Trump’s plan to the motivations behind. The cryptographic markets were mainly back in the red on Monday, with XRP, soil and ADA suffering each of intrajournial drops of more than 10% after hovering the day before. Bitcoin and ether also fell.
The rout of the February crypto had exerted pressure on Trump, which returned to the White House after the industry showed it from campaign donations and praise. Even the reversal by the Securities and Exchange Commission of a repression of several years had failed to stem the sale, which partly attributed to the nervousness about Trump’s trade rates and dramatic measures to prohibited government programs.
“For a president who is prosperous by being the hero of the market, the performance of assets at risk of last week was anything but inspiring,” said Capital QCP in a note on Monday. “The political calculation was clear – Trump needed a victory before his approval notes started to slip, a metric that he probably takes very personally.”
XRP dropped from 11% to 10:05 a.m. in New York, while Sol slipped 18% and ADA fell by almost 10%. Bitcoin was about 5% down, trading below $ 90,000, while Ether lost almost 10%.
In its first declaration on the creation of a crypto reserve in January, the White House said that such a stock would be “potentially derived from cryptocurrencies legally seized by the federal government through its efforts to apply the law”. Bitcoin tends to be the main crypto token entered by law enforcement organizations, including in the bust of the Silk Road website.
The initial announcement contained few details on how the reserve would be created, disappeared investors and helping to prepare the land for the sale of February.
Trump’s Sunday messages came at a time when his Tsar Crypto David Sacks are preparing to welcome the first summit in the White House industry. On Monday, Sacks went to the X platform to announce that it has sold all its cryptocurrency participations – notably Bitcoin, Ether and Sol – before Trump’s administration took over in January.
XRP is the cryptocurrency associated with Ripple Labs Inc., the company led by Brad Garlinghouse. Sol and Ada are the native tokens of Solana and Cardano blockchains. You will find below a summary of the history of tokens and people to whom they are linked.
Xrp
Trump in February shared a story of Coindesk on Garlinghouse on Truth Social, attracting the two cheers of XRP fans – the native token of Ripple – and growled among other crypto leaders.
Garlinghouse said in December that the company planned to donate $ 5 million in XRP to Trump inauguration festivities. He and the legal director of Ripple, Sta Alderoty, were photographed with the president of Mar-A-Lago.
This level of political access represents a striking reversal of fortunes for the company based in San Francisco, which was continued in 2020 by the SEC and accused of having offered unregistered titles. An American district court later discovered that XRP was a guarantee when it was sold to institutional investors, but not when it was sold to retail investors, which was considered a victory in the cryptography industry. The dry appealed this decision. Although the SEC has abandoned many measures to apply the crypto, the Ripple call has not yet been abandoned.
Founded in 2012 and originally appointed Opencoin, Ripple was one of the first companies to start developing a large book technology distributed for consumer financial services. He created his own platform in order to accelerate and reduce the cost of the international payment rule.
Like many other blockchain startups targeting traditional financial services flows, he has had mixed results, banks being slow to adopt technology.
Solara
Solana is the blockchain of choice for so -called guy issuers, digital assets with little intrinsic value which can nevertheless balloon in value if they are able to capture the attention of social media users – and who are likely to implose just as quickly.
Trump and his wife Melania launched Memecoins on Solana in January. The president’s token is down approximately 80% compared to its top of all time by about $ 74, according to Coingecko data. In February, the president of Argentina, Javier Milei, was involved in a political scandal after having directed his supporters to a same, based in Solana, named Balance in an article on X.
Launched in 2020, Solana was once closely associated with the entrepreneur now improved Sam Bankman Fried and his commercial company Alameda Research. The soil price, its token, fell sharply after the collapse of the Crypto Empire of Bankman Fried in November 2022.
He then rebounded in 2024 before reaching a summit of $ 295 on January 19 – the same weekend that Trump made his debut. The token has since fell 45% to negotiate at around $ 160.
Cardano
Cardano, who positions himself as an Ethereum rival, was launched in 2017 after having collected more than $ 60 million thanks to a sale of his tokens, according to Coingecko Records. Unlike Ethereum, which is considered the main commercial motorway in the blockchain industry, Cardano has struggled to claim a lot of market share on decentralized financial markets, which are based on automated software rather than people to perform functions.
Charles Hoskinson, co-founder and CEO of the company behind Cardano’s blockchain, said in a podcast published on X shortly after Trump’s victory in November that he had helped the legislators to shape the cryptography policy.
Watch: Charles Hoskinson de Iog Singapore Pte Ltd on Bloomberg US TV
The total value of the assets locked on Cardano is currently $ 607 million, compared to around $ 90 billion in Ethereum, according to Defilma Data.
– With the help of Sidhartha Shukla, Anna Irrera and Emily Nicolle.
