CharlesHoskinsoncriticizesChrisLarsenfordonating$11.8MtoKamalaHarris,sparkingconcerninthecryptocommunity.
ThepriceofXRPdropped5%thisweek,coincidingwithChrisLarsen’spoliticaldonationtotheKamalaHarriscampaign.
RippleandCardanofacemarketpressureasChrisLarsen’sdonationraisesconcernsaboutcrypto’sneutralityanddecentralization.
Cardano’sCEOCharlesHoskinsoncriticizesRippleco-founderChrisLarsenfordonating$11.8milliontosupportKamalaHarris,causingcontroversyinthecryptocurrencycommunityaboutthedecentralizednatureofdigitalassets.
ThecriticismcameoutafterHoskinsonrepliedtoanXpostbyRobertF.KennedyJr,whoaddressedhisconcernsaboutthepoliticalsituationundertheBiden-Harrisadministration.RFKJr.accusedVicePresidentKamalaHarrisofdisrespectingDonaldTrumpandpointedtotheadministration’sapprovaloftheDepartmentofDefenseDirective5240.01.
ThereisnothingliketellingourmilitarythattheAmericanpeoplearenowinthethreatsdomesticcategory.https://t.co/Y8UXofe7cbpic.twitter.com/ElnfqSGoEh
—CharlesHoskinson(@IOHK_Charles)October23,2024
ThisdirectivethatempowersthePentagontokillcitizensprotestingagainstsomegovernmentpolicieswaspointedoutasviolatingthePosseComitatusActof1878byHoskinson.
PoliticalDonationsAddComplexitytotheCryptoMarket
KamalaHarris’presidentialcampaignwasdirectlyaffectedbyChrisLarsen’sdonation,whichaffectedthecryptocurrencymarket.ThisforcedRipple’sCEOBradGarlinghouseandLarsentoexplaintheirsideofthestory,significantlythe$11.8milliontheycontributed.Manyofthecommunitysuggestedthatdonationsinthiswaywouldentailpotentialpoliticalandadministrativeissuesthatmightdecentralizecryptocurrency.
ThedonationalsooccurredwhenthemarketsentimentforRipple’scryptocurrency,XRP,wassqueezedlower.XRPhasbeendown5%inthepastweekandisnowat$0.52pertoken.Also,thereisreducedderivativesmarkettradingforXRP,withoptions’tradingvolumedecreasingby82%,asperCoinglassinformation.ThesedevelopmentssuggestLarsen’spoliticalactionsmaycontributetonegativemarketperceptions.
XRPandADAPricesDeclineAmidControversy
TheissuesrelatingtoLarsen’spoliticalcontributionsalsoimpactedthepriceofCardano,whichisitsnativetoken,ADA.ADAhaslost3.00%ofitsvalueoverthelast24hrs,withthepricescurrentlyhoveringaround$0.340toa24-hourhighof$0.356.ADAappearstoalignwithoverallmarkettrends.However,someanalystsinthemarketfoundthatLarsenandotherpoliticalfiguresdistortthemarket’sstatus.
ThevolatilemovementinbothXRPandADAindicatesthatthemarketisvulnerabletopoliticalandregulatoryfactorssuchaspoliticaldonationsandregulatoryrisks.Giventheconstantpressurefromregulatorsandgovernmentsworldwide,themarketresponseshouldremindsuchactorstobemoreopenandnon-biasedaboutcryptoassets.
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