Key Takeaways
- Donald Trump has named several tokens to be included in the U.S. crypto strategic reserve.
- The Winklevoss Twins have suggested just BTC or ETH qualify as digital gold and digital oil, respectively.
- Some have suggested that SOL, XRP, and ADA are bad choices because they’re controlled by centralized authority.
The U.S. is boldly moving ahead with its plans to establish a crypto strategic reserve.
However, the tokens named by President Donald Trump for inclusion in the reserve have prompted a curious response from the heads of two major U.S. crypto exchanges.
Specifically, Coinbase CEO Brian Armstrong and Gemini co-founders Cameron and Tyler Winklevoss have stated that Solana (SOL), Ripple (XRP) and Cardano (ADA) are unsuitable as reserve assets.
Bitcoin First, Bitcoin Only
In response to Donald Trump and U.S. Crypto Czar David Sacks’ announcement, Coinbase CEO Brian Armstrong has said that he’s “still forming an opinion on asset allocation.”
However, for now, he posits that “just Bitcoin” would be the simplest solution and that the “successor to gold” is an easier story to sell.
According to Cameron Winklevoss, who is “excited” about the reserve, there is just one asset that “meets the bar as a store of value reserve asset,” namely Bitcoin.
Equating BTC to gold and ETH to oil, he claims that the addition of Ethereum could mirror America’s physical gold and oil reserves.
“It’s possible other assets could make the grade in the future but it’s a very high bar.”
Cameron Winklevoss additionally suggested that the government acquire altcoins through “seizure, forfeiture, etc.” rather than purchasing them directly from the open market.
Echoing this, Tyler Winklevoss explains that he has no problem with SOL, XRP, or ADA but doesn’t think they’re “suitable” as reserve assets.
Meeting the “Bar”
In response, Cardano founder Charles Hoskinson took issue with the comments from Tyler Winklevoss, posting to X writing:
“Notice how they never tell you what the threshold is?”
In addition, Eli Nagar, CEO of the Bitcoin mining pool platform Braiins, posted to X, taking issue with Trump’s altcoin selections.
He notes that ETH’s proof-of-stake (PoS) “cartel” makes ETH “easy to censor.”
With XRP, he claims that since Ripple controls the supply, it can dump tokens whenever it wants.
On Solana, Nagar oddly writes, “SOL > shuts down, insiders hold most.”
Perhaps this suggests that SOL devs could pull the plug on the network and rug the entire ecosystem.
Finally, he posits that the Cardano Foundation “calls the shots,” not the users.”
Hoskinson had one simple response:
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
