The Rise and Fall of Restore the Republic: A $155 Million Cryptocurrency Fiasco Linked to Eric Trump
Fortune•5 months ago•
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The Rise and Fall of Restore the Republic: A $155 Million Cryptocurrency Fiasco Linked to Eric Trump

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Summary:

  • Restore the Republic (RTR) cryptocurrency surged and collapsed within hours, linked to Eric Trump.

  • Investors poured over $155 million into RTR, causing a 120% price spike.

  • A tweet from Eric Trump warning against fake tokens led to an 80% price drop.

  • Donald Trump Jr. clarified that no tokens should be associated with the Trump family without direct communication.

  • RTR joins other Trump-themed memecoins that have surged without official backing.

A Dramatic Cryptocurrency Rollercoaster

A cryptocurrency known as Restore the Republic (RTR) has experienced an astonishing surge and subsequent collapse shortly after its launch. This token, which debuted on the Solana blockchain, was quickly linked to Eric Trump, the son of former president Donald Trump. This association stemmed from a tweet in which Eric expressed his excitement for Crypto/DeFi, hinting at an upcoming announcement.

Rumors Ignite a Frenzy

As speculation mounted, the crypto community, along with MAGA supporters, invested over $155 million into RTR within just six hours, driving its value up by more than 120% according to CoinGecko data. However, the excitement was short-lived. Following a peak price of $0.022, RTR's value plummeted over 80% within one hour.

The Downfall Triggered by a Tweet

The rapid decline was triggered by a tweet from Eric Trump himself, in which he cautioned against “fake tokens” and clarified that no official Trump-backed project had been announced. This tweet dashed the hopes of many investors who had anticipated a legitimate connection.

Clarifications from the Trump Family

In an interview, Donald Trump Jr. addressed the confusion, stating his love for memecoins but emphasizing that no tokens should be associated with the Trump family unless directly communicated by them.

Miscommunication and Fallout

As the token's value began to drop, Ryan Fournier, chair of Students for Trump, claimed he had heard from sources that Eric Trump would support the token. He defended his earlier statements by clarifying that he wasn't heavily involved in the cryptocurrency space.

Allegations of Manipulation

Members of the crypto community pointed out that Kanpai Labs, creators of the Kanpai Pandas NFT, had been promoting RTR before its launch. The creator, known as Bags, alleged that the Trump family was involved in the coin's launch but later retracted their support.

A Trend in Trump-Themed Tokens

RTR isn't the first Trump-themed memecoin to gain traction without the former president's endorsement. Other tokens like Super Trump (STRUMP) and MAGA (TRUMP) have also seen significant market activity, often surging during favorable political forecasts for Trump.

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