CryptoQuant CEO Warns About Crypto Weaponization

Ki Young Ju, the CEO of CryptoQuant, has raised concerns over the weaponization of crypto by the United States, suggesting it could harm the industry.

In a recent tweet, Ju stated that the crypto landscape is influenced by what benefits the US and the Trump administration. He noted that regulations have shifted since Trump’s election, implying that anything serving US interests is effectively legal. This has led to a deregulated market despite the absence of appropriate regulations to curb bad actors.

Ju remarked:
> “One thing was made clear: “Follow the Trump administration’s agenda and contribute to U.S. national interests.” This principle was firmly established, and the issuance of Trump meme coins symbolized it.”

He criticized the tendency to select crypto assets based solely on their alignment with US interests, arguing that tokens benefiting the US could be detrimental to other nations.

Bitcoin and Ethereum Neutrality at Risk

Young Ju believes Bitcoin and Ethereum may face significant risks in the US due to their neutrality and global appeal.

He stated:
> “Judging by Trump’s recent posts, it seems that Bitcoin and Ethereum are now being signaled as ‘neither friend nor foe.’”

This sentiment stems from Trump’s announcement about the crypto reserve. Initially, he mentioned XRP, SOL, and ADA as part of it, later including BTC and ETH, praising them as key assets.

Ju interpreted this sequence as Trump soliciting Bitcoin and Ethereum to demonstrate their strategic value to the US, writing:
> “Can I interpret his tweets this way? ‘BTC and ETH, show me your strategic value—for me and the USA. I just closed a deal with XRP, SOL, and ADA.’”

However, there are differing opinions, with some suggesting Trump may have assumed BTC and ETH were inherently part of the reserves.

Crypto Market Reacts to Reserve Announcement

Following the crypto reserve announcement, Bitcoin has plummeted back to $85,000, losing over 8% and erasing all gains made after the news. It had previously risen to $94,000 but has been on a downward trend since.

The entire crypto market experienced sharp declines within 24 hours, with other cryptocurrencies such as ETH down 15%, XRP by 16%, ADA by 16%, and SOL by 17%. The reasons for this downturn remain unclear, but it reflects the negative sentiment surrounding Trump’s announcement.

Although the market initially reacted positively, many stakeholders have criticized the decision to create a crypto reserve instead of one centered around Bitcoin, with additional backlash regarding the inclusion of XRP and ADA, which have not seen major stablecoin integrations according to crypto analyst ZachXBT.