Following a sharp decline in cryptocurrency values, former U.S. President Donald Trump announced the creation of a “U.S. Crypto Reserve” aimed at stabilizing the industry. The announcement, made on Trump’s Truth Social platform, specified that the reserve would include Bitcoin, Ethereum, XRP, Solana, and Cardano. This move temporarily reversed the market’s downward trend, with Bitcoin’s value rising from $85,000 to $95,000.
Critics questioned the strategy, particularly given the administration’s cost-cutting initiatives led by Elon Musk. White House AI and crypto czar David Sacks urged critics to wait for more details before passing judgment. Sacks, a venture capitalist, did not elaborate on the specifics of the proposal.
The inclusion of lesser-known cryptocurrencies like Solana, XRP, and Cardano raised eyebrows, especially considering Sacks’ past investments in Solana through his venture capital firm Craft Ventures. Craft Ventures has significant holdings in crypto companies like Bitwise, whose top assets align with the proposed reserve’s composition.
Despite the initial market boost, cryptocurrency values soon returned to pre-announcement levels, indicating the temporary nature of Trump’s intervention.
— news from Mashable