A strategic bitcoin reserve has been a big part of crypto discussions ahead of Donald Trump’s inauguration, but does the incoming 47th president have other tokens in mind?
Solanar SOLRipple’s XRP and Hederer HBAR Among the altcoins that performed well on Thursday, in part thanks to a The NYPost reports That Trump was “receptive” to the idea of creating an “America-first strategic reserve” of tokens including SOL, XRP and Circle USDC stablecoin
SOL jumped more than 8% to $217 after the report, while XRP continued The advance hit $3.35 this week, just shy of its 2018 record high, per Data source CoinGecko. HBAR, the native token of the Hedera hashgraph network founded by the pseudonymous Texas-based firm, was not mentioned in the story, but rose more than 10% to its strongest price since early December.
that lead CoinDesk 20 Index In a 5% gain over the past 24 hours, Bitcoin’s 0.5% gain has quickly outstripped the $100,000 mark.
Anticipation among crypto investors is building for Trump’s inauguration next week, and the possible announcement of a first-day executive order focusing on the digital asset industry. Trump promised during the campaign to position the United States as a leader in the crypto space, including creating a national reserve of Bitcoin. Senator Cynthia Loomis also introduced it Bitcoin Law In July it proposed to acquire 5% of the supply of Bitcoin, while some US states also explore or placed in front the law To create a reserve for assets.
Not so fast
While some token holders may salivate over the idea of governments buying cryptos other than bitcoin, market watchers have expressed concern.
“It’s a ridiculous idea and will never happen,” said Quinn Thompson, founder of hedge fund Laker Capital. X post.
“It’s not the government’s place to make venture capital bets on altcoins,” Thompson elaborated to CoinDesk. “This rumor of a strategic reserve for other, non-BTC coins is another example of people taking what is otherwise a bad idea and running on it as fact.”
Anthony Georgiades, general partner at investment firm Innovating Capital, said while it was “very positive” to promote US-based innovation, the potential “nationalization of digital assets” could undermine efforts to decentralize the blockchain economy.
“As it stands today, there is really only one token that is sufficiently and purely decentralized and that is Bitcoin,” he said in an interview on the CoinDesk Markets Daily Show. “All of these other projects have the fundamental strength and power to move toward that level of decentralized policy. This nationalization of digital assets could undermine those efforts over time.”
Read more: Why Litecoin Could Be the Next Crypto to Get an ETF
