A cryptocurrency named Restore the Republic (RTR), themed around Donald Trump, has seen a dramatic 95% drop in value after it was confirmed to have no affiliations with the Trump family. The token initially saw a surge in price to $0.1490 following a post by Ryan Fournier, President of Students for Trump, who misleadingly claimed it was an official Trump token. However, Eric Trump’s strong denial led to a swift and significant decline in the token’s value.
Trump Denial Causes Price Crash
Data from DexScreener revealed that RTR was trading at just $0.0091 at the time of reporting. Prior to the denial, speculation was rife within the crypto community that Donald Trump Jr. might be involved in launching a memecoin, especially after he hinted at a project related to decentralized finance (DeFi) on social media. Analysts had cautioned Trump Jr. about the potential risks involved.
Following the incident, Donald Trump Jr. announced plans to develop a new DeFi platform aimed at improving access to banking services. While specific details were sparse, he mentioned that the platform aims to revolutionize the banking sector over time.
Trump and the Crypto Market
Trump-themed cryptocurrencies have experienced sharp declines in value before. On August 5, during a broader market downturn known as Black Monday, TrumpCoin (DJT) plummeted from $0.00555 to $0.000229 per token, marking a 95% loss. Similarly, on July 13, the price of the largest Trump-related memecoin, MAGA (TRUMP), surged by over 30% following an assassination attempt on the former president.
The MAGA memecoin, part of the Ethereum ecosystem, saw its price climb from $6.31 to $10.36 immediately after the incident, with its market capitalization rising from $293 million to $469 million within 45 minutes.
Key Takeaways
– Cryptocurrencies themed around public figures can be highly volatile and risky.
– False associations can drive initial price surges, but clarifications often lead to sharp declines.
– Upcoming projects by influential individuals can significantly impact market trends.
The rapid and dramatic shifts in the value of Trump-themed cryptocurrencies exemplify the volatile nature of the market and the impact of public figures’ endorsements or denials. Investors should exercise caution and conduct thorough research before engaging in such speculative assets.