With a “pro-Crypto” president in the office, the Cryptocurrency industry has not had a boring day since the presidential election. While many people hear the “pro-crypto” and believe it will have a positive impact on the market, have reality to have a Pro-Crypto President Starting to look more like a negative catalyst than a blessing for the industry.
The latest event that has made this obvious was Trump’s announcement of one We crypto reserve. At the announcement, the reserve is said to include XRPThe Solarand Ada Without mentioning other crypto courses. This immediately caused the market to pump but led to confusion among cryptos supporters and enthusiasts.
The odd elections in the reserve
The main cause of frustration was the coins in the reserve: Solana, ADA and XRP – the 6th, 8th and 3rd largest crypto prices with marketing. This surprised the industry, as Trump had previously rumored to launch a BTC strategic reserve But did not mention it, which made it seem like these other coins came out of the left field.
This raised the following question: How did it Trump administration Decide that these three coins are the first included in the strategic reserve? Although there are no hard data now, it looks like it was a pure business decision. Individuals from these blockchain networks probably lobbied or even offer to be included in the strategic reserve. They probably had meetings with the president and others in the White House to angle and get their coin included in the reserve, with the positions that probably go to the highest bidders or those who could do the best with the White House.
Surprisingly, crypto enthusiasts had a lot to say about the choice of coins in the reserve. It seems that the feedback made his way to the president because he followed up two hours after his original posts to say that BTC and ETH, the first and 2nd largest coins after market cases, would also be included in the reserve.
A pump and dumping schedule in disguise
Without rhyme or reason for the first three coins included in the strategic reserve, a broader conversation about the Cryptocurrency industry in America began, ranging from moderate to more complex issues that observers and participants have had Trump’s attitude toward crypto.
On the lower rolls of the steps, the idea is that the crime is mainly allowed in the crypto world today, especially because of the securities and stock market commission (Sec) The latest announcement that a majority of memecoins are not securities. This started A new wave of fraud Because it essentially legalized pump and dumps. The president’s latest announcement of the strategic reserve indicates this. Weeks before the announcement tweeted the president’s son, Eric Trump, and encouraged everyone to “buy the dip”, afterwards this looks like an investment council.
After Trump announced the strategic reserve, Eric Trump followed up with a tweet that explicitly seemed to be the investment council. Even if the council Was to hold in the long term, the market measure around the strategic reserve message was played as a hallmark pump and dumping.
When Trump announced the strategic reserve, the price of BTC, which is often used as a benchmark on the market, was about $ 85,075. About six hours after Trump mentioned that BTC and ETH would also be in the reserve, the price of BTC shot up to about $ 94,770, an increase of 11% from the price before the announcement. However, euphoria in the market did not last long. The pump turned quickly, especially when people questioned questioning the decision to add coins such as sun, ADA and XRP to the reserve. As the conversation around these coins and the strategic reserve as a whole continued, the price of Bitcoin fell under $ 88,000 just 24 hours later.
The unstrategic, strategic crypto reserve
In addition to the fact that the marketing activity-where an instant pump was followed by a sales-is a classic element in a pump and dumping, which may be a sign of Insider tradingThere is a greater controversy with the strategic crypto reserve.
Although this is undoubtedly a short -term gain for Cryptocurrency It has pumped people’s bags, if the administration comes with the strategy, raises the issue of award of a percentage of US tax dollars to buy speculative crypto courses without usability is a responsible feature – especially when Cryptocurrency remains a minority within the larger population.
In addition, this strategic reserve seems to be anything but strategic. It does not seem to serve any actual “strategic” purposes, nor does it seem to achieve any goal or offer financial or disaster protection for the United States.
By definition, a strategic reserve is a commodity stored by a government with the intention that it will be used in an emergency or unexpected disturbance. Current reserves in the United States include strategic petroleum reserves, strategic crude oil reserve and strategic grain reserve – all articles with clear purposes and practical use in critical situations. But when it comes to the coins in the Crypto Reserve, it is not easy to understand when, where and why we would ever need these crypto courses, especially in the case of an emergency.
A dangerous precedent for the crypto market
As we continue to zoom out, it becomes clear that the latest legislative changes have essentially legalized fraud in the Cryptocurrency industry, which makes Memecoin pump and dumps and insider trading allowed. Although this pumps the bags in a small group of insiders, it puts a dangerous precedent on the rest of the crypto market, a precedent that can ultimately lead to the industry imploding unless a set of innovators rising and offering a crypto-infused product or service that creates real value in the world.
This implosion would lead to the market being very difficult to recover, especially if this trend with pure profit -seeking at all costs continues without the requirement to provide anything of value at the other end.
So, what does this mean for the average crypto investor? I would say that it means that they should not expect much of the president “pro-crust”. Everything that has been delivered and taken place so far is short -term pumps that inevitably have led to their respective tokens dumped shortly after launch or after a new announcement has been made. This leaves most average crypto investors in red while insiders, those who are early for the party and the companies that offer crypto services are booming – all at the consumer’s expense. Unless something changes, and it changes rapidly, I do not see many for long-term positive developments that are happening in the Cryptocurrency industry at any time soon.
Lack of crypto understanding in the White House
Finally, this whole situation highlights that Trump and the people around him do not know much about crypto. If they did, they would not have led from the strategic reserve message by mentioning three Tier-2 coins. More importantly, they would not have taken half of the steps that brought the crypto industry closer to destruction, for example Launch of Trump Memecoin And essentially remove all the shelters on site at Sec to protect consumers from fraudulent crypto projects.
Watch: Chronicle Upgrade, Teranode and Bitcoin Stewardship
https://www.youtube.com/watch?v=jbg2lv62o4m Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard writing; encrypted media; Gyroscope; Image-in-Image; Web-Share” Reference Policy = “Strict-Origin-When-Cross-origin” Permitting Lorscreen = “” “” “
