A memecoin called Restoring the Republic (RTR) on the Solana blockchain experienced wild price swings on Thursday, with its market capitalization surging to $155 million, followed by reports of its relationship with former President Donald Trump. Plunged 95% after false accusations of association.
The sharp rise and fall of RTR tokens
The sharp rise and fall of the RTR token came after Donald Trump Jr. and Eric Trump hinted at an upcoming DeFi announcement in social media posts and praised the crypto community for their father. After the support. Eric Trump previously tweeted that he was "in love with Cryptocurrency/DeFi," sparking speculation about cryptocurrency projects that Trump might support.
The coin’s price surged from $0.0005 to $0.1460 in a matter of hours before quickly plummeting to $0.0076. This volatility was driven by influential figures on X who promoted the coin as potentially being associated with the former president. At the time of writing, the coin is currently trading at $0.0084.
Rumors and clarifications
Ryan Fournier, president of the Trump Student Association, initially exaggerated the rumor, saying "there are rumors that an official Trump coin has been launched... called 'Restore the Republic.'" However, he later deleted the tweet and Clarified: “Sources tell me that Donald Jr. will support this coin. That’s why I say rumors. I am not a veteran in cryptocurrencies, nor am I involved in this project in any way.”
The bubble burst when Eric Trump explicitly denounced the coin’s ties to his father. "This is absolutely FALSE," he tweeted in response to claims about Trump's official token. Both Eric and Donald Trump Jr. have warned against unauthorized projects. Donald Jr. posted: "The only official items will be announced directly by us to be fair to everyone. Don't be fooled - stay tuned for the real deal."
Cryptocurrency Market Volatility
The incident revealed the volatility of the meme coin market and its susceptibility to misinformation. Cryptocurrency observers pointed to evidence that Kanpai Labs, the entity behind the Kanpai Pandas NFT, promoted the token prior to its launch. Bags, Kanpai's anonymous creator, claimed in a now-deleted post that the Trump family picked a release date before "hitting us hard"
The wild swings in the RTR token have shown us the importance of due diligence in the cryptocurrency space, especially for projects claiming high-profile affiliations. It also shows how much influence social media celebrities and politicians can have on the cryptocurrency market even without direct involvement.
Other controversial events
This is not the first Trump-themed token to spark controversy. Recently, another coin called DJT made headlines when Martin Shkreli claimed that he and Donald Trump’s son Barron created the coin. This was followed by a 90% plunge in DJT tokens last week, when a large group of token holders appeared to sell en masse.
The incident highlights Donald Trump’s enduring influence among cryptocurrency enthusiasts. Analyst firm LunarCrush reports that there are currently 162 Trump- or MAGA-themed cryptocurrency tokens, up from 111 two weeks ago. The surge in Trump-related tokens demonstrates how politics (understood in terms of personalities within the political sphere) intersect with cryptocurrencies, and the potential for such exploitation in unregulated markets.
Investor alert
Although RTR plummeted, it has maintained substantial growth since its launch, with transaction volume of approximately $130 million. The incident is a wake-up call for investors in the cryptocurrency space, emphasizing the need to conduct thorough research and be skeptical of unsubstantiated claims of celebrity or political support.
In summary, the RTR token incident not only revealed the high risk and high reward nature of the cryptocurrency market, but also reminded investors that they must conduct sufficient research and due diligence before making any investment decisions. While social media and celebrity power can quickly move markets, they also bring huge risks. In the future, investors should be more cautious and avoid being confused by false information.