Analyst Raises Concerns Over Strategic Crypto Reserve, Calling It ‘Corruption in Disguise’
Crypto analyst Nicholas Merten Aka datadash recently expressed strong concern about the “strategic crypto reserves” proposed by the Trump administration, including Bitcoin, Ethereum, XRP, Solana and Cardano. Merten questioned the inclusion of including these altcoins, believing that they do not have enough realistic adoption or use cases and are crucial to national security.
Merten pointed out that suspicious trading activity on the exchange was conducted at a large number of leverage positions in Bitcoin and Ethereum before the reserve reserve was announced. He raised concerns that could suggest insider trading, in which case people who use the information to profit from the early knowledge of the announcement.
While some may view crypto reserves as a good move for the industry, Merten believes that this may actually be a way for insiders who invest in these cryptocurrencies to enrich themselves. He criticized the decision to join Altcoins such as XRP, Solana and Cardano, suggesting that the coins do not see the strategic importance of the government’s claim.
“I don’t think we need a whole basket of random altcoins. By any imagination, that’s not strategic importance to the United States. We need to take a step back and really realize that while we may like cryptocurrencies, it’s just purely internal activity that can encourage the assets that people in this administration have,” he said.
Merten also believes that the government should not focus on cryptocurrencies but invest in companies with tangible value and influence, such as Apple and NVIDIA, which play an important role in the global market. He expressed concern that the reserve could lead taxpayers to fund venture capital, mostly benefiting people with internal knowledge and calling it “disguised corruption.”
