Charles Hoskinson criticizes Chris Larsen for donating $11.8M to Kamala Harris, sparking concern in the crypto community.
The price of XRP dropped 5% this week, coinciding with Chris Larsen's political donation to the Kamala Harris campaign.
Ripple and Cardano face market pressure as Chris Larsen’s donation raises concerns about crypto’s neutrality and decentralization.
Cardano's CEO Charles Hoskinson criticizes Ripple co-founder Chris Larsen for donating $11.8 million to support Kamala Harris, causing controversy in the cryptocurrency community about the decentralized nature of digital assets.
The criticism came out after Hoskinson replied to an X post by Robert F. Kennedy Jr, who addressed his concerns about the political situation under the Biden-Harris administration. RFK Jr. accused Vice President Kamala Harris of disrespecting Donald Trump and pointed to the administration's approval of the Department of Defense Directive 5240.01.
https://twitter.com/IOHK_Charles/status/1849234444432953777
This directive that empowers the Pentagon to kill citizens protesting against some government policies was pointed out as violating the Posse Comitatus Act of 1878 by Hoskinson.
Political Donations Add Complexity to the Crypto Market
Kamala Harris’ presidential campaign was directly affected by Chris Larsen’s donation, which affected the cryptocurrency market. This forced Ripple’s CEO Brad Garlinghouse and Larsen to explain their side of the story, significantly the $11.8 million they contributed. Many of the community suggested that donations in this way would entail potential political and administrative issues that might decentralize cryptocurrency.
The donation also occurred when the market sentiment for Ripple’s cryptocurrency, XRP, was squeezed lower. XRP has been down 5% in the past week and is now at $0.52 per token. Also, there is reduced derivatives market trading for XRP, with options' trading volume decreasing by 82%, as per Coinglass information. These developments suggest Larsen's political actions may contribute to negative market perceptions.
XRP and ADA Prices Decline Amid Controversy
The issues relating to Larsen’s political contributions also impacted the price of Cardano, which is its native token, ADA. ADA has lost 3.00% of its value over the last 24 hrs, with the prices currently hovering around $0.340 to a 24-hour high of $0.356. ADA appears to align with overall market trends. However, some analysts in the market found that Larsen and other political figures distort the market’s status.
The volatile movement in both XRP and ADA indicates that the market is vulnerable to political and regulatory factors such as political donations and regulatory risks. Given the constant pressure from regulators and governments worldwide, the market response should remind such actors to be more open and non-biased about crypto assets.
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