The cryptocurrency market recently witnessed a dramatic downfall as the “Restore the Republic” token (RTR) plummeted by 95%. Initially touted as a potential official digital asset linked to former President Donald Trump, the token’s value soared to $0.1490, driven by speculative excitement. This surge was largely attributed to a now-deleted post by Ryan Fournier, chair of Students for Trump, suggesting that RTR was an official Trump token. However, this excitement was short-lived.

Eric Trump’s Denial Sparks Market Panic

The token’s rapid ascent came to an abrupt halt when Eric Trump, the former president’s son, publicly denied any connection between the Trump family and the RTR token. He warned the public about “fake tokens,” leading to a sharp and immediate decline in RTR’s value. The token, which had reached a market capitalization of $155 million within hours of its launch, now trades at just $0.0081, according to Dex Screener data.

Speculative Frenzy and Market Manipulation Allegations

The launch of RTR was shrouded in speculation, further fueled by a cryptic tweet from Eric Trump expressing interest in cryptocurrency and decentralized finance (DeFi). This, combined with Fournier’s misleading post, created a speculative frenzy among investors.

Complicating matters further, reports surfaced of Kanpai Labs, the company behind the Kanpai Pandas NFTs, allegedly promoting RTR through advertisements prior to its launch. Google records indicate that Kanpai Labs funded these promotions, leading to accusations of market manipulation. Bags, a pseudonymous figure associated with Kanpai Labs, claimed that the RTR launch date was chosen by the Trump family, but this statement was later deleted, adding to the confusion and controversy.

The Wider Issue of Celebrity-Linked Tokens

The RTR debacle highlights a broader trend in the cryptocurrency world, where tokens linked to celebrities often face skepticism regarding their legitimacy. A recent example is the DJT token, which also suffered a significant downturn following unfounded claims of a connection to Donald Trump’s son Barron and controversial figure Martin Shkreli. DJT experienced a 90% drop after a major token holder liquidated their holdings, mirroring the rapid collapse of RTR.

This incident serves as a stark reminder of the volatility and risks associated with speculative investments in the cryptocurrency market.