According to the author, the increasing alignment of crypto companies like Coinbase (COIN) with political powers and traditional finance, such as through sponsorships and lobbying, is eroding the original cypherpunk ethos and could heighten regulatory risks, potentially leading to market volatility and affecting investor sentiment for cryptocurrencies including BTC, ETH, and XRP as stated in the article.

According to the author, the dilution of cypherpunk values in crypto, highlighted by Coinbase's political sponsorships and Ripple's lobbying efforts, could increase regulatory scrutiny and market volatility for cryptocurrencies like BTC and ETH. The author cites examples such as Coinbase sponsoring a military parade and hiring ex-DOGE staffers, which may undermine investor confidence and lead to price fluctuations.