Why Did Donald Trump Choose Three Altcoins for Crypto Reserve? Chinese Analyst Explains in Depth

The announcement by US President Donald Trump that Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP and Cardano (ADA) will be included in the strategic cryptocurrency reserves of the US sparked discussions in the global crypto community.

Alex Xu claims that Trump's decision was influenced by pre-election sponsorships.

Chinese analyst Alex Xu, a research partner at Mint Ventures, questioned the seriousness of such a reserve and the chances of obtaining federal approval, evaluating the potential impact of this decision.

Xu stated that SOL, XRP, and ADA are heavily involved in supporting political activities, including sponsorships and donations to Trump's inauguration fund. According to Xu, this support likely influenced Trump's decision to include these cryptocurrencies in the strategic reserve.

Analyst, in the continuation of his evaluation, discussed the selection of these altcoins as follows:

• Political and Financial Ties - Xu highlighted that since the election campaign, there have been close connections between the Xu, Solana, XRP, and Cardano projects and Trump, providing visible financial support. He suggested that this latest move serves as a form of reciprocation, allowing Trump to prestigious acknowledge them through administrative power.
• The Impact of Bitcoin Legitimacy – Xu warned that treating assets like SOL, XRP, and ADA as part of a strategic reserve could undermine the credibility of Bitcoin being included. He argued that this decision could weaken the chances of passing a Bitcoin reserve bill at the federal level.
• Legislative Challenges - According to Xu, advancing these additions through a presidential task force does not guarantee legislative success. He noted that the Republican Party only has a small majority in the House of Representatives and therefore the likelihood of such a proposal passing is low.
• Sovereign Wealth Fund Potential - Xu predicted that Trump could bypass federal legislative barriers by creating a sovereign wealth fund managed by the Treasury to directly purchase SOL, XRP, and ADA without congressional approval. However, questioned whether these projects would be willing to provide enough financial incentives to justify such a move for Trump.