President Trump's announcement of a Strategic Bitcoin Reserve on Truth Social sparked backlash in the cryptocurrency community, particularly because it includes altcoins like Cardano. Critics accuse the administration of corruption, particularly around investment interests, but miss the larger issue of how the Reserve will be funded. There's concern that taxpayer money could be used, though a more plausible scenario involves the Reserve being funded by legally seized cryptocurrencies. This distinction could significantly impact Bitcoin holders and the broader crypto space.
"They're doing DEI for Charles Hoskinson," former CoinDesk Chief Insights Columnist David Z. Morris wrote on X - Hoskinson's Cardano (ADA) was announced to be included in the Reserve.
"This is a new level of corruption," wrote communications strategist Derek Martin, detailing David Sack's investment in Bitwise. "You get exit liquidity and everybody gets exit liquidity."
Critics of the Trump administration's crypto Reserve "completely miss the point" of its potential funding sources and implications for Bitcoin holders.
As outlined in Trump's Executive Order to "Strengthen American Leadership in Digital Financial Technology", the Reserve may be funded through cryptocurrencies seized by law enforcement.
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