According to the author, the dilution of cypherpunk principles in the cryptocurrency industry, such as Coinbase's sponsorship of political events and Ripple's lobbying efforts, could heighten regulatory scrutiny and dampen investor sentiment, potentially increasing volatility in key markets like BTC and ETH. This trend may undermine the core ethos of decentralization, leading to market uncertainty as firms align with traditional power structures.

According to the author, the crypto industry's foundational cypherpunk values are being compromised as firms like Coinbase engage in political activities, such as sponsoring events linked to politicians and hiring former DOJ staffers, which could heighten regulatory scrutiny. This poses increased risks for trading sentiment in cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), potentially leading to volatility, as reported in the article.

According to the author, the dilution of cypherpunk values in the crypto industry, evidenced by Coinbase's political sponsorships and Ripple's lobbying activities, could erode trust in decentralized assets like BTC and XRP, leading to increased market volatility and regulatory scrutiny. The author cites Coinbase's sponsorship of a Trump-affiliated military parade and Ripple's influence-peddling in Washington D.C. as examples of co-option that may deter investors and impact prices, while highlighting that Bitcoin ETFs and fintech adoptions do not align with crypto's original principles.