Story Highlights

• ZachXBT says that ADA and XRP lack legitimacy without stablecoin issuers.
•  Trump’s crypto reserve proposal breaks sentiment in the industry.
•  ADA and XRP fans respond to ZachXBT’s criticism.

The world of cryptocurrency is abuzz since blockchain sleuth ZachXBT questioned the validity of Cardano (ADA) and XRP based on their failure to have major stablecoin issuers. He claimed that without the support of institutions such as Circle Tether or Paxos, these blockchains can hardly hold their own against Ethereum or Solana. His remarks ignited fierce controversy amongst ADA and XRP enthusiasts who came to defend their ecosystems against charges of irrelevance.

ZachXBT, who is known for revealing scams and fraudulent schemes in the crypto community, claimed that stablecoins are a good determinant of whether a blockchain is legitimate or not. He noted that neither ADA nor XRP has drawn significant stablecoin issuers even though they have been around in the market. In his opinion, if the blockchains were worth anything, stablecoin issuers would have already incorporated them into their networks. When questioned by users, he doubled down on his stance, highlighting that in the absence of this vital backing, ADA and XRP’s competitive position is fragile.

Experts Question Trump’s Crypto Strategic Reserve Proposal

Cardano’s supporters were quick to counterclaim that ADA has particular hurdles that bar it from integrating with prominent stablecoins such as USDC. Others noted that Bitcoin is a leading cryptocurrency and yet it has no stablecoin issuers from large providers but still holds the top market position. Ripple’s supporters also came to the defense of XRP, noting the launch of RLUSD, a recently introduced stablecoin. ZachXBT, however, dismissed this noting that the action only serves to point out XRP’s growing centralization despite its rhetoric of decentralization.

Amid this controversy, former President Donald Trump’s national crypto reserve proposal has thrown yet another layer of contention in the debate. His campaign recommends incorporating cryptocurrencies into a strategic reserve that will provide retail investors with more control over financial assets and less dependence upon traditional banking institutions. While the proposal has been greeted by some as a move toward mainstream adoption of crypto, others have questioned its viability and the reserve asset selection process.

Eric Trump also expressed backing for the effort, highlighting its capability to redefine capital markets, while Coinbase CEO Brian Armstrong warned against diluting the reserve into a diverse group of cryptocurrencies. Uncertainty about what assets will be in it has given rise to speculations, particularly amid Trump’s wavering record of crypto advocacy.

The intersection of these discussions underscores the debate on crypto legitimacy and widespread adoption. Some believe blockchain networks thrive with institutional and regulatory backing, while others argue that decentralization and user adoption are more crucial. As industry discussions focus on ADA, XRP, and Trump’s crypto reserve initiative, the broader question of legitimacy in the crypto world remains unanswered.