- Introduction
- Initial Surge and Sudden Decline
- Speculative Beginnings and Market Reaction
- The Broader Context of Celebrity Tokens
- Conclusion
Introduction
Recently, the cryptocurrency world was shaken by the dramatic collapse of the Restore the Republic token (RTR). Initially marketed as a digital asset linked to former President Donald Trump, the token lost 95% of its value after it was revealed that it had no connection to the Trump family.
Initial Surge and Sudden Decline
RTR’s price skyrocketed to $0.1490 shortly after its launch, fueled by speculation and a now-deleted post from Ryan Fournier, chair of Students for Trump. Fournier's post suggested that RTR was an official Trump token, which initially sparked significant interest in the crypto community. However, the excitement was short-lived.
The token's meteoric rise quickly hit a wall when Eric Trump, the former president’s son, issued a firm denial on social media:
This is absolutely false https://t.co/qmv2AKeUYD
— Eric Trump (@EricTrump) August 8, 2024
He clarified that the Trump family had no involvement with the RTR token and warned the public about “fake tokens.” This denial led to a swift and dramatic collapse in RTR’s value, which now stands at $0.0081 according to Dex Screener data.
Speculative Beginnings and Market Reaction
The token’s launch had been preceded by a cryptic tweet from Eric Trump expressing his enthusiasm for cryptocurrency and decentralized finance (DeFi). This tweet, combined with Fournier’s misleading information, created a speculative frenzy.
RTR’s market capitalization soared to $155 million within hours of its debut, only to crumble when the connection to Trump was debunked.
The situation was further complicated by the alleged involvement of Kanpai Labs, the company behind the Kanpai Pandas NFTs. Reports surfaced that Kanpai Labs had been actively promoting RTR through advertisements prior to its launch.
According to Velodata News, Google records indicate that Kanpai Labs funded and pushed these advertisements, suggesting that the company played a significant role in hyping up the token.
Bags, a pseudonymous figure associated with Kanpai Labs, claimed that the launch date for RTR was chosen by the Trump family and described the fallout as a “hard rug pull.” This claim, like many in the crypto space, was later deleted, adding to the confusion and drama surrounding the token’s collapse.
The Broader Context of Celebrity Tokens
The RTR debacle is part of a larger trend in the cryptocurrency world where celebrity-themed tokens often face skepticism regarding their legitimacy.
Another recent example is the DJT token, which also suffered a severe downturn following claims of a connection to Donald Trump’s son Barron and Martin Shkreli. DJT experienced a 90% drop a few weeks ago after a major token holder sold off a significant portion of their holdings.
Conclusion
The events surrounding the Restore the Republic token highlight the importance of careful information verification and avoiding speculation in the cryptocurrency market. False claims and nonexistent connections can have dramatic consequences for both investors and the reputation of the market as a whole.
