According to the author, companies like Coinbase and Ripple are increasingly involved in political activities, such as sponsoring events and lobbying, which could undermine the cypherpunk ethos of cryptocurrencies and heighten regulatory risks. This co-option may lead to market instability and volatility for assets like BTC and ETH, as investor trust erodes due to ethical concerns, similar to past incidents like FTX's corruption.

According to the author, the co-option of cryptocurrency by mainstream entities, such as Coinbase's political sponsorships and Ripple's lobbying efforts, undermines core cypherpunk values like decentralization and could heighten regulatory scrutiny. This may lead to increased market volatility and erode investor confidence in assets like BTC and ETH, as cited in examples including Coinbase's involvement in political events and the fallout from FTX's corruption.