A newly launched cryptocurrency on the Solana (SOL) network, called Restore the Republic (RTR), initially soared to a $155 million market valuation amid rumors it was Donald Trump’s official token. However, the token’s value plummeted by 95% on Thursday after Trump’s son clarified that his father does not yet have an official token.
Excitement over Donald Trump’s potential involvement in cryptocurrency surged earlier in the week when his son, Eric Trump, tweeted about his newfound interest in Crypto and DeFi, hinting at a major announcement. This fueled speculation, and when RTR began trading on Thursday, its market capitalization quickly skyrocketed to $155 million.
The rumors were further amplified by Ryan Fournier, a conservative activist and chair of Students for Trump, who posted on social media that the “official Trump coin” was called Restore the Republic. However, that post has since been deleted.
The situation turned when Eric Trump intervened, warning about “fake tokens” and confirming that no official Trump project had been announced. This caused RTR’s value to collapse, dropping 95% from its peak.
Friends: Beware of fake tokens! The only official Trump project has NOT been announced! You will hear it here first. https://t.co/33wfKyaMVB
— Eric Trump (@EricTrump) August 8, 2024
Fournier later explained on social media that sources informed him that Don Jr. might support the token, which is why he referred to it as a rumor. He emphasized that he was not deeply involved in cryptocurrency and had no part in the project.
Some observers also noted that Kanpai Labs, the team behind the Kanpai Pandas NFTs, had promoted the token before its launch. The pseudonymous creator of Kanpai, known as Bags, claimed that the Trump family selected the launch date and then “hard rugged” them, but this statement was also deleted shortly after.
Blockchain analysis revealed that early investors, likely insiders, profited by $4 million within six hours of RTR’s rapid rise and fall, according to onchain analyst Lookonchain. Five crypto wallets bought 105 million RTR tokens using $882,000 worth of SOL and then sold 95 million tokens for $5 million in SOL.
This incident highlights the unpredictable and risky nature of the emerging meme coin market, where scams and sudden collapses are common. It follows a similar situation with another Trump-themed token, DJT, which lost 90% of its value last week after a large holder sold off a significant amount. The episode also underscores Donald Trump’s influence among crypto enthusiasts, as evidenced by the growing number of Trump-related tokens, which have increased from 111 to 162 in just two weeks, according to analytics firm LunarCrush.
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