The post Analyst Raises Concerns Over Strategic Crypto Reserve, Calling It ‘Corruption in Disguise’ appeared first on Coinpedia Fintech News
Crypto analyst Nicholas Merten aka Datadash recently shared strong concerns about the Trump administration’s proposed “Strategic Crypto Reserve,” which includes cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano. Merten questioned the inclusion of these altcoins, arguing that they don’t yet have enough real-world adoption or use cases to be considered vital for national security.
Merten pointed out suspicious trading activity on exchanges, where large leveraged positions in Bitcoin and Ethereum were taken just before the announcement of the reserve. He raised concerns that this could suggest insider trading, where people with early knowledge of the announcement used that information to make a profit.
While some people may view the crypto reserve as a good move for the industry, Merten believes it may actually be a way for insiders with investments in these cryptocurrencies to enrich themselves. He criticized the decision to include altcoins like XRP, Solana, and Cardano, suggesting that these coins do not hold the strategic importance that the government claims.
“I don’t think we need to have an entire basket of random altcoins. This is not of strategic importance to the United States by any stretch of the imagination. We need to step back and really realize that while we may love crypto, this is just purely insider activity to drum up the assets that are held by the people who are in this administration,” he said.
Merten also argued that instead of focusing on crypto, the government should be investing in companies with tangible value and impact, like Apple and Nvidia, which have a significant role in global markets. He expressed concern that this reserve could lead to taxpayers funding risky investments that mostly benefit the people with insider knowledge, describing it as “corruption in disguise.”