Donald Trump’s announcement that the US will include three lesser-known digital tokens in its strategic crypto reserve was greeted with skepticism in the industry, with investors questioning the project’s merits and the coins he selected giving up some of their initial gains.
Trump said Sunday on Truth Social that the XRP, SOL and ADA tokens will be included in the reserve, along with Bitcoin and Ether. The news ignited an immediate crypto rally, offering relief to an asset class fresh off its worst month since 2022.
Yet the initial euphoria soon gave way to questions about everything from the feasibility of Trump’s plan to the motivations behind it. Crypto markets were mostly back in the red on Monday, with XRP, SOL and ADA each suffering intraday declines of more than 10% after soaring the day before. Bitcoin and Ether also fell.
The February crypto rout had put pressure on Trump, who returned to the White House after the industry showered him with campaign donations and praise. Even the Securities and Exchange Commission’s reversal of a years-long crackdown had failed to stem the selloff, which many attributed in part to nervousness about Trump’s trade tariffs and dramatic moves to gut government programs.
“For a president who thrives on being the market’s hero, last week’s risk asset performance was anything but inspiring,” QCP Capital said in a note on Monday. “The political calculus was clear — Trump needed a win before his approval ratings start slipping, a metric he likely takes very personally.”
XRP was down 11% at 10:05 a.m. in New York, while SOL slipped 18% and ADA fell almost 10%. Bitcoin was about 5% lower, trading back below $90,000, while Ether lost almost 10%.
In its first statement about creating a crypto reserve in January, the White House said such a stockpile would be “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” Bitcoin tends to be the main crypto token seized by law enforcement agencies, including in the bust of the notorious Silk Road website.
The initial announcement contained little detail on how the reserve would be created, disappointing investors and helping set the stage for February’s selloff.
