Solana and Ripple XRP Jump as Donald Trump Is Reportedly Considering ‘America First’ Cryptocurrency Strategic Reserve, but Experts Suggest Otherwise

The Bitcoin Strategic Reserve was a big part of the cryptocurrency discussion before Donald Trump’s inauguration, but does the incoming 47th president have other tokens in mind?

Solana Sol, XRP And Hedera Habbar Among the altcoins that outperformed on Thursday, thanks in part to… New York Post report That Trump was “receptive” to the idea of ​​creating an “America First Strategic Reserve” of tokens including SOL, XRP and Circle’s US dollars Stable coin.

SOL jumped more than 8% to $217 after the report, while XRP jumped continued This week’s advance reached $3.35, just below its 2018 record price, per Data source: CoinGecko. HBAR, the native token of the Hedera Hashgraph network founded by the Texas-based company, was not mentioned in the story, but rose more than 10% to its strongest price since early December.

This led CoinDesk 20 Index to a 5% gain over the past 24 hours, sharply outpacing Bitcoin’s 0.5% rise to just under $100,000.

Anticipation is building among cryptocurrency investors for Trump’s inauguration next week, and the potential announcement of executive orders on the first day focusing on the digital asset industry. During his election campaign, Trump promised to position the United States as a leader in cryptocurrencies, including creating a national bitcoin stockpile. Senator Cynthia Lummis also introduced Bitcoin law In July, it proposed buying 5% of the Bitcoin supply, while some US states are also proposing this. exploration Or it has been brought up legislation To create a reserve for the asset.

Not so fast

While some token holders may salivate at the idea of ​​the government purchasing cryptocurrencies other than Bitcoin, market watchers have raised concerns.

“This is a ridiculous idea and will never happen,” Quinn Thompson, founder of hedge fund Laker Capital, said in a press release. Share X.

“The government has no right to make venture capital bets on altcoins,” Thompson explained to CoinDesk. “These rumors about a strategic reserve of currencies other than Bitcoin are another example of where people take what is considered a bad idea and treat it as fact.”

Anthony Georgiades, general partner of investment firm Innovating Capital, said that while it is “very positive” for boosting innovation in the United States, the “potential nationalization of digital assets” could weaken efforts to decentralize blockchain economies.

“As it stands, there is really only one token that is sufficiently and purely decentralized and that is Bitcoin,” he said in an interview with CoinDesk Markets Daily. “All of these other projects have the fundamental strengths and ability to reach this level of decentralization. Nationalization of digital assets may weaken these efforts over time.”

Read more: Why might Litecoin be the next cryptocurrency to get its own ETF?