In the ever-evolving world of cryptocurrency, rumors can be as potent as reality. This was starkly evident when a newly launched token called “Restore the Republic” (RTR) experienced a meteoric rise and an equally dramatic fall within a matter of hours. The token, which operates on the Solana (SOL) blockchain, was rumored to be the official cryptocurrency of former President Donald Trump. Fueled by this speculation, RTR’s market value soared to an astonishing $155 million before plummeting by 95% shortly after the rumor was debunked by Trump’s son, Eric Trump.
The Start of a Speculation-Fueled Hype
The excitement kicked off earlier this week when Eric Trump, one of the former president’s sons, hinted at his growing interest in cryptocurrency and decentralized finance (DeFi) with a tweet that stated, “I have fallen in love with Crypto / DeFi. Stay tuned for a big announcement.” This mysterious message ignited enthusiasm among Trump supporters and crypto fans, many of whom speculated that an official Trump-backed cryptocurrency was on the way.
The buzz reached its peak on Thursday when RTR began trading, with its value rapidly increasing and its market capitalization reaching $155 million within hours of launch. Ryan Fournier, a conservative activist and chair of Students for Trump, added to the speculation by suggesting that RTR might be the official Trump coin. His post on X (formerly Twitter) claiming, “Rumor has it that the official Trump coin is out…called Restore the Republic,” fueled the frenzy, though he later deleted the post as the truth came to light.
The Decline: Eric Trump’s Clarification
The hype came crashing down when Eric Trump clarified on social media that his father had no official ties to any cryptocurrency, including RTR. He warned potential investors about “fake tokens” and emphasized that no official Trump project had been announced. This revelation caused RTR’s value to plummet, with the token losing 95% of its worth almost immediately.
In a follow-up post on X, Fournier distanced himself from the project, explaining that he had been misled by sources claiming that Donald Trump Jr. would support the token. “I was told by sources that Don Jr. would be backing this token,” Fournier wrote. “That is why I said rumor. I’m not a big crypto guy, and I was not in any way involved in this project.”
Behind the Scenes: Kanpai Labs’ Involvement
As the situation unfolded, crypto observers began to piece together the events leading to RTR’s dramatic rise and fall. Kanpai Labs, the entity behind the Kanpai Pandas non-fungible tokens (NFT), emerged as a significant player in promoting RTR before its launch. Bags, the pseudonymous creator of Kanpai, even claimed that the Trump family had chosen the launch date, only to “hard rugged us” by denying any official connection to the token. This post was also deleted shortly afterward.
Blockchain data revealed that early investors or insiders made significant profits during RTR’s brief surge in value. On-chain analysis by Lookonchain showed that five crypto wallets purchased 105 million RTR tokens with $882,000 worth of SOL, then sold 95 million tokens for $5 million in SOL, netting $4 million in profits within just six hours.
A Lesson for the Memecoin Market
The RTR incident highlights the inherent risks in the memecoin market, which is notorious for its volatility and vulnerability to scams and rug pulls. Similar issues have plagued other Trump-themed tokens recently. For example, DJT, another token linked to the former president, dropped by 90% last week after Martin Shkreli claimed he and Barron Trump, Donald Trump’s youngest son, were behind its creation. The token’s value plummeted when a large holder sold off a significant portion of their holdings.
The broader lesson from these events is the considerable influence Donald Trump has among crypto enthusiasts. According to analytics firm LunarCrush, there are currently 162 Trump or MAGA-themed crypto tokens in existence, a sharp increase from 111 just two weeks ago. This trend highlights the potent mix of celebrity and speculation that continues to drive the cryptocurrency market, often with unpredictable and sometimes damaging outcomes.
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