According to the author, the dilution of cypherpunk values in the crypto industry, evidenced by Coinbase's political sponsorships and increased corporate lobbying, heightens regulatory risks and could undermine investor confidence, potentially impacting trading volumes and prices for assets like BTC and ETH. The author cites Coinbase's alignment with political events and fintech acquisitions as signs of co-option that may lead to greater market volatility and reduced long-term adoption.