abdimuke

On March 2, 2025, President Donald Trump sent shockwaves through the cryptocurrency world with a Truth Social post announcing plans for a U.S. Strategic Crypto Reserve. Among the digital assets named were XRP, Solana (SOL), and Cardano (ADA), with Bitcoin (BTC) and Ethereum (ETH) later added as the “heart of the reserve.” The inclusion of XRP—a cryptocurrency developed by the U.S.-based Ripple Labs—raised eyebrows, particularly among Bitcoin maximalists who argue it should be the sole focus of such a reserve. While Trump has not explicitly stated why he favors XRP, several factors tied to his administration’s goals, XRP’s unique attributes, and political dynamics suggest why it might hold a special place in his vision for America’s cryptocurrency future.

1: XRP’S ALIGNMENT WITH “AMERICA FIRST” PRIORITIES.
Trump’s political brand has long been rooted in an “America First” ethos, emphasizing domestic innovation and economic leadership. XRP, created by Ripple Labs, a San Francisco-based company, fits this narrative more neatly than Bitcoin, which has no centralized origin or corporate overseer. By including XRP in the strategic reserve, Trump may be signaling support for a homegrown cryptocurrency that embodies American technological ingenuity. Ripple’s focus on streamlining cross-border payments—a sector where the U.S. seeks to maintain global dominance—could further appeal to Trump’s desire to bolster American financial influence, especially against competitors like China.

In contrast, Bitcoin’s decentralized nature and mysterious creator (Satoshi Nakamoto) lack the patriotic branding Trump might prefer. Posts on X have speculated that lobbyists pitched XRP, SOL, and ADA as “Made in America” cryptos, aligning with Trump’s economic nationalism. Whether this was a deliberate pitch or not, XRP’s American roots likely make it a compelling choice.
2. SPEED, EFFICIENCY, & REAL-WORLD UTILITY
Unlike Bitcoin, often dubbed “digital gold” for its store-of-value properties, XRP was designed for practical utility in financial systems. Ripple’s XRP Ledger enables near-instantaneous transactions with minimal fees, making it a standout for cross-border payments—a $150 trillion annual market. Trump’s vision of making the U.S. “the crypto capital of the world” might prioritize cryptocurrencies that offer tangible economic benefits over speculative assets. XRP’s partnerships with major financial institutions, including banks and payment providers, could position it as a bridge between traditional finance and the crypto economy—something Bitcoin, with its slower transaction times and higher costs, struggles to achieve.
This utility could resonate with Trump’s business-oriented mindset. As a former real estate mogul, he might see XRP’s ability to facilitate fast, cheap transactions as a practical tool for commerce, contrasting with Bitcoin’s focus on long-term value storage or Ethereum’s complex smart contract ecosystem.
3. REGULATORY CLARITY AND FRESH START
XRP holds a rare distinction in the crypto space: regulatory clarity in the U.S. After a years-long legal battle with the Securities and Exchange Commission (SEC), Ripple secured a partial victory in 2023 when a judge ruled that XRP is not a security in secondary market transactions. This clarity reduces uncertainty for institutional adoption, a factor Trump might value as he seeks to rebuild the U.S. crypto industry after what he calls “corrupt attacks” by the Biden administration.
Trump’s appointee for SEC Chairman, Paul Atkins—a known crypto advocate—could further ease regulatory hurdles for XRP, potentially dropping the SEC’s ongoing appeal against Ripple. This aligns with Trump’s pro-crypto campaign promises and contrasts with Bitcoin and Ethereum, which still face regulatory ambiguity in some contexts. XRP’s legal standing might make it a safer bet for a government-backed reserve.
4. PERSONAL AND POLITICAL CONNECTIONS
Trump’s ties to Ripple’s leadership add a personal dimension to his potential preference. In January 2025, Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty dined with Trump, an event Garlinghouse described as a “great dinner” on X. This meeting, coupled with Ripple’s $150 million in donations to pro-crypto super PACs during the 2024 election (many supporting Republican candidates), suggests a relationship that could influence Trump’s stance. While correlation isn’t causation, the optics of Ripple’s support and Trump’s subsequent inclusion of XRP in the reserve hint at political quid pro quo—a dynamic not as evident with Bitcoin’s decentralized community or Ethereum’s broader developer base.
Moreover, Trump’s family has embraced crypto ventures, including the Solana-based World Liberty Financial and memecoins like $TRUMP and $MELANIA. XRP’s inclusion in the reserve could indirectly boost Solana (also named), creating a rising tide for Trump-affiliated projects.
5. DIVERSIFICATION BEYOND $BTC
Trump’s initial omission of Bitcoin from his March 2 announcement—only adding it later after backlash—suggests he may not view it as the sole cornerstone of his crypto strategy. Bitcoin’s dominance (over 50% of the $3 trillion crypto market) is undisputed, but its price volatility and limited scalability might not fully align with Trump’s vision for a dynamic reserve. XRP, with its $140 billion market cap and focus on stability for payments, offers diversification. By naming XRP alongside SOL and ADA, Trump may be betting on a portfolio approach, leveraging multiple U.S.-linked assets to hedge against Bitcoin’s fluctuations and appeal to a broader crypto audience.
6. COUNTER ARGUMENTS AND CRITICISM
Not everyone agrees with Trump’s apparent XRP leanings. Bitcoin maximalists, like Tyler Winklevoss, argue that only Bitcoin meets the bar for a strategic reserve due to its decentralization and global acceptance. Critics on X and in the crypto press have called XRP’s inclusion a “government subsidy” for Ripple, pointing to its centralized origins (Ripple controls a significant XRP stash) as a flaw. Some even speculate Trump’s choice reflects personal gain, given his crypto holdings and family ventures, rather than strategic foresight.
CONCLUSION
While Trump hasn’t explicitly said, “I prefer XRP because…,” his actions and the context provide clues. XRP’s American pedigree, practical utility, regulatory clarity, political ties, and role in a diversified reserve align with his stated goals of elevating the U.S. crypto industry and asserting economic leadership. Whether this preference holds—or proves effective—remains to be seen, especially as the White House Crypto Summit on March 14, 2025, promises more details. For now, XRP’s spotlight in Trump’s plan underscores a bold, if controversial, bet on a cryptocurrency that bridges old finance with the new frontier.

When launching a cryptocurrency, you have two main options: creating a coin or creating a token. Tokens are significantly easier to develop because they rely on existing blockchain networks, while coins require creating and maintaining a blockchain from scratch. Although forking (copying) an existing blockchain can simplify the process, it does not eliminate the challenge of attracting users and validators to sustain the network. However, launching a new coin may offer greater long-term potential compared to simply creating a token.

Key Differences Between Coins and Tokens

| Feature | Coin | Token |
|----------------------|----------------------------------------------|--------------------------------------------|
| Blockchain | Runs on its own blockchain | Built on an existing blockchain |
| Development | Requires advanced blockchain coding skills | Can be created with existing tools |
| Cost & Time | More expensive and time-consuming | Faster, simpler, and relatively cheaper |
| User Base | Must build a new user and validator network | Leverages an established blockchain user base |

Creating a Coin

Developing a new coin requires designing and launching an independent blockchain, which can be time-intensive and costly. Alternatively, you can fork an existing blockchain to accelerate the process. For example, Bitcoin Cash (BCH) was created as a fork of Bitcoin. However, even with a forked blockchain, you still need deep technical knowledge and must attract users and validators to sustain the network, making adoption a major challenge.

Creating a Token

Tokens are built on existing blockchains like Ethereum or Binance Smart Chain (BSC), which simplifies development while benefiting from the blockchain’s security and reputation. Though you won’t have full control over the blockchain’s rules, tokens offer significant customization options. Various platforms and tools make token creation easier, allowing developers to focus on token utility rather than building an entire blockchain from scratch.

Key Factors to Consider When Designing Your Cryptocurrency

Before creating a coin or token, it's essential to define its purpose, economic model, and legal considerations.

1. Define Your Cryptocurrency’s Utility

Different cryptocurrencies serve different functions. Some act as access keys to services, while others represent assets like stocks or commodities. Clearly defining your cryptocurrency’s role will help structure its development.

2. Design Your Tokenomics

Tokenomics refers to the economic model behind your cryptocurrency, including supply, distribution, and incentives. A poorly designed tokenomics model can lead to failure. For example, if you're creating a stablecoin but fail to peg it correctly, users will not trust or adopt it.

3. Ensure Legal Compliance

Cryptocurrency regulations vary by country. Some regions impose restrictions or outright bans on certain digital assets. It’s important to consult legal experts to ensure compliance and avoid legal challenges down the road.

How to Create Your Cryptocurrency in 7 Steps

If you’re only creating a token, not every step in this guide will apply. However, if you’re building a coin, you’ll need to follow most of these steps to establish your own blockchain.

1. Choose a Suitable Blockchain Platform

For tokens, select a blockchain for minting your cryptocurrency. Ethereum and BSC are popular choices, but sidechains may also be worth considering. If you’re creating a coin, you’ll need to design a custom blockchain or hire developers to build one.

2. Pick a Consensus Mechanism

The consensus mechanism determines how transactions are validated on your blockchain. The two main options are:

Proof of Stake (PoS): More energy-efficient, widely used in modern blockchains.
Proof of Work (PoW): Used by Bitcoin, offers strong security but requires significant computational resources.

Most new blockchains prefer PoS or variations of it due to lower hardware requirements and environmental impact.

3. Design Your Blockchain Architecture (For Coins Only)

If you’re building a coin, you must decide whether your blockchain will be:

Public (open to everyone, like Bitcoin)
Private (restricted access, like government or corporate blockchains)
Permissioned (hybrid model with some control over participation)
The architecture should align with your project’s goals. For instance, central banks issuing digital currencies typically opt for private blockchains for regulatory control.
4. Begin Blockchain Development

Developing a blockchain requires deep expertise in cryptography, distributed systems, and smart contract programming. Since modifying a live blockchain is extremely difficult, extensive testing is necessary before deployment. A testnet allows you to simulate transactions and ensure functionality before launching.

5. Audit Your Crypto and Its Code

Security audits help identify vulnerabilities in your blockchain or token smart contract. Reputable companies like Certik offer blockchain security audits, which improve trust and protect against potential exploits. Publicly sharing audit results increases credibility among users and investors.

6. Verify Legal and Regulatory Compliance

Before launching your cryptocurrency, seek legal advice to determine whether you need regulatory approval or licenses. This step is significant for stablecoins, financial tokens, or any crypto asset that may fall under securities laws.

7. Mint Your Cryptocurrency

The final step is minting your coin or token. The process depends on your chosen tokenomics model:

Fixed supply tokens (e.g., ERC-20 tokens) are minted simultaneously using smart contracts.
Mining-based coins (e.g., Bitcoin) are gradually created as miners validate transactions.
Staking-based coins (e.g., Ethereum 2.0) reward users for participating in network security.
Once minted, you can distribute your cryptocurrency through a launch event, exchange listings, or direct distribution to early adopters.

onclusion

Deciding between creating a coin or a token depends on your project’s goals, technical expertise, and resources. Coins offer more control but require a robust network and higher development costs. Tokens, on the other hand, are easier to deploy and benefit from established blockchain ecosystems. Regardless of the choice, careful planning in terms of utility, tokenomics, and legal compliance is essential for long-term success.

-Rifined by; Abdimuke