Crypto tribalism and crypto wars is back – A pro-crypto government won’t solve investors madness
Pro-XRP lawyer John Deaton is convinced that crypto tribalism, coined as a ploy to favour certain digital assets over others, will make a comeback soon. In a message posted on X, Deaton said it was “great” to watch industry leaders debate whether the US government should set up a Bitcoin reserve exclusively or consider adding other cryptos.
Deaton’s recent comments come after President Donald Trump signed an executive order on Thursday to form a “crypto asset working group” in the presence of newly appointed crypto czar David Sacks. The task force will reportedly explore the creation of a federal strategic digital currency stockpile.
People are asking what I think about the crypto tribalism/Crypto Wars we’re seeing proliferate on this platform regarding whether there should be a SBR or a SCR.
— John E Deaton (@JohnEDeaton1) January 24, 2025
My response:
YES!
It’s about f’g time.
Compared to the last four years, how GREAT is it to watch industry…
In the order, Trump did not mention the reserves would be limited to Bitcoin. Some crypto enthusiasts had hoped that the executive order would directly establish a national stockpile instead of simply “studying” the potential for one.
According to Deaton, the situation’s ambiguity means the government has stopped the “favoritism” seen during former President Biden’s tenure.
Lawyer Deaton: Crypto tribalism continues
Since 2022, John Deaton has been a vocal critic of what he terms “crypto tribalism,” describing it as a major threat to the future of the industry. Deaton criticized industry leaders for not openly standing with Ripple Labs in its legal battle with the US Securities and Exchange Commission (SEC).
In August 2020, the SEC filed a lawsuit against Ripple for illegally selling XRP as an unregistered security. Ripple is arguing that XRP is a digital currency, not a security.
In his posts on social media, Deaton warns that the toxic culture of tribalism, where certain digital assets and their communities are pitted against each other, undermines the overall progress of the industry.
According to Deaton, who represents the crypto platform Dragonchain, tribalism manifests in many ways. One of the most destructive is the tendency to welcome government intervention as long as it does not target one’s chosen cryptocurrency.
“There’s nothing wrong with being passionate about the token or ecosystem of your choice, but rooting for your fellow man to lose money because you think their token of choice is a shitcoin makes no fucking sense to me,” the attorney said on X.
His sentiments have led him to bash heads with the likes of Ethereum co-founder Vitalik Buterin and IOHK founder Charles Hoskinson. In December 2022, Buterin took a dig at Ripple for its court statement, which called Bitcoin and Ethereum “Chinese-controlled virtual currencies.”
Looks like the Ripple/XRP team is sinking to new levels of strangeness. They're claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are "Chinese-controlled". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— vitalik.eth (@VitalikButerin) December 22, 2020
The Ether co-founder said XRP “lost their right” from regulatory overreach when they purported that the two networks are highly connected to China. Deaton quoted Buterin’s post, arguing that for those who are fighting crypto tribalism, his comments were “demoralizing.”
Looks like the Ripple/XRP team is sinking to new levels of strangeness. They're claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are "Chinese-controlled". 😂😂https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
— vitalik.eth (@VitalikButerin) December 22, 2020
In another social media post, he pointed out that many of those who contribute to the vitriol are not the ones at risk. Founders and executives of crypto companies, per the Republican lawyer, are often well protected financially, whereas regular investors are the ones who bear the brunt of the market’s volatility.
“I would never say names, but some very important leaders w/in the crypto community have told me privately that they can’t or won’t say anything publicly but support the truth being exposed.”
‘Infighting’ within the crypto community
According to the US war veteran, the return of crypto tribalism manifests especially during times of market growth, where the success of one digital asset often breeds jealousy and resentment among the holders of others.
In a January 17 X post, following the widespread rumors that XRP will be part of President Trump’s proposed government crypto reserve, Deaton called out journalists for making uncorroborated claims to pit one crypto against another.
“XRP is always a prime target, but so are other projects, including Bitcoin,” he continued.
This type of sentiment, according to Deaton, stems from people’s frustration that their token has not yet seen a price increase while others are soaring.
Deaton is urging the industry to move away from the “my coin goes up, and your coin goes down” mentality, as it only hinders the collective progress that the crypto industry has made and results in unnecessary division.
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