A newly launched cryptocurrency on the Solana SOL/USD blockchain, named Restore the Republic RTR/USD, which was widely speculated to be an official token associated with Donald Trump, saw its market value soar to $155 million before plummeting by 95% on Thursday.
What Happened: The sharp decline occurred after Donald Trump’s son, Eric Trump, clarified that his father does not yet have an official cryptocurrency, according to Coindesk.
The speculation surrounding Donald Trump’s entry into the crypto space gained momentum earlier in the week when Eric Trump tweeted his growing interest in crypto and decentralized finance (DeFi), hinting at a major upcoming announcement.
On Thursday, RTR began trading and quickly surged to a $155 million market capitalization within hours of its launch.
Ryan Fournier, a conservative activist and chairman of Students for Trump, further fueled the rumors by tweeting that the “official Trump coin” had been released under the name Restore the Republic.
However, that post has since been deleted.
The excitement was short-lived as Eric Trump intervened, warning the public about “fake tokens” and confirming that “the only official Trump project has not been announced.”
This statement caused RTR’s value to nosedive by 95% from its peak.
“I was told by sources that Don Jr. would be backing this token,” Fournier later explained in a post on X (formerly Twitter). “That is why I said rumor. I’m not a big crypto guy and I was not in any way involved in this project.”
Adding to the controversy, Kanpai Labs, known for its Kanpai Pandas non-fungible tokens (NFTs), was reportedly involved in promoting RTR before its launch.
The pseudonymous creator of Kanpai, known as Bags, claimed that the Trump family had chosen the launch date but then “hard rugged us,” a post that was also deleted shortly after.
On-chain analysis by Lookonchain revealed that early investors or insiders made a quick profit of $4 million within six hours of the token’s launch and subsequent collapse.
Five crypto wallets purchased 105 million RTR tokens using $882,000 worth of SOL and then sold 95 million tokens for $5 million in SOL.
Why It Matters: This incident highlights the unpredictable and often risky nature of the memecoin market, where scams and “rug pulls” are common.
Just last week, another Trump-themed token, TrumpCon DJT/USD, made headlines when Martin Shkreli claimed that he and Donald Trump’s son Barron had created the token. DJT lost 90% of its value when a large holder dumped their tokens.
The episode also underscores Donald Trump’s significant influence among crypto enthusiasts. According to analytics firm LunarCrush, there are currently 162 Trump or MAGA MAGA/USD (Make America Great Again) themed cryptocurrencies, a sharp increase from 111 just two weeks ago.
The ongoing discussion surrounding the legitimacy and risks of such tokens is likely to be a focal point at Benzinga’s Future of Digital Assets event on Nov. 19.
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