Cardano (ADA) and XRP Become US Reserve Assets, Receiving Criticism

Bittime - United States President Donald Trump's announcement regarding the formation of the U.S. Crypto Strategic Reserve which includes Cardano (ADA) and XRP sparked controversy. 

Allegations of Insider Trading and Transparency in Focus

The move sparked accusations of insider trading as well as criticism regarding the reserve's transparency and funding.

ADA and XRP Inclusion Sparks Accusations of Insider Trading

Last Sunday, Trump announced that XRP, ADA, and Solana (SOL) would be part of the top five digital assets Crypto Strategic Reserve. 

This announcement triggered a 72% surge in ADA prices in a short period of time, from $0.65 to $1.12, before dropping back below $1. However, the announcement also caused anger on social media.

Source: ADA to USDT via Market Bittime

Eric Trump, the president's son and vice president of the Trump Organization, praised the timing of the announcement when traditional markets were closed. 

This statement sparked accusations that the announcement was designed to "pump up" the prices of certain assets without providing benefits to retail investors.

Some social media users also questioned suspicious trading activity before the official announcement. One trader was found to have opened a high-risk long position on BTC and XRP just hours before the announcement was made.

Read too Donald Trump Announces Crypto Strategic Reserve: XRP, ADA, and SOL

Criticism Regarding the Use of Public Funds

In addition to accusations of insider trading, criticism has also been directed at the potential use of public funds to fund these crypto reserves. Investor Joe Lonsdale warned that using taxpayers' money to buy digital assets is an unethical move. 

He emphasized that taxes should be used for critical needs such as national defense and infrastructure, not for "crypto schemes."

Jason Calacanis, another investor, stated that this reserve funding could trigger a public uprising. He also highlighted changes in the fate of XRP, which previously faced a lawsuit from the SEC but is now supported by the president.

Read too XRP Price Prediction Today March 4

Mixed Reactions from the Crypto Community

While some criticized this move, there were also those who praised Trump's decision. Charles Hoskinson, the founder of Cardano, defended XRP's inclusion in the reserve, calling it an efficient global technology with a strong community. According to Hoskinson, XRP's resilience for more than a decade proves its worth as part of the US strategic reserve.

Read too Cardano Boss Opens Up About His Role in the White House

However, skepticism remains. One social media user called Trump's announcement on Truth Social "simply a promotion of a particular digital asset" with no legal basis or official policy.

Conclusion

Cardano (ADA) and XRP inclusion announcement in U.S. Crypto Strategic Reserve has sparked heated debate in the crypto community. Although this move provided a significant boost to the prices of related assets, criticism regarding transparency and potential misuse of public funds continues to emerge. 

With attention focused on the next steps of the Trump administration, the future of this strategic reserve remains a big question mark for market players.

FAQ About ADA and XRP Inclusion in US Reserves

1. What sparked the controversy surrounding the inclusion of ADA and XRP in US reserves?

Controversy arose due to accusations of insider trading and concerns about the use of public funds to purchase these digital assets.

2. How will this announcement affect ADA and XRP prices?

The announcement triggered a 72% surge in ADA prices in a short period of time, although prices later fell again. Meanwhile, XRP also experienced a significant increase after previously facing a lawsuit from the SEC.

3. What are the main criticisms of this move by the US government?

The main criticisms are the perceived unethical use of public funds and the potential abuse of power to influence digital asset prices. Some investors worry that this move could spark a public uprising.

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Reference

Terence Zimwara, XRP, ADA Inclusion in Strategic Reserve Criticized; Critics Raise Insider Trading Claims, Accessed March 4, 2025

Author: IN