Trump Coin, officially called “Restore the Republic” (RTR), attracted more than $155 million in investments within a few hours of its launch, driven by rumours of links with the Trump family. The token price did go high, but then it plummeted as quickly as it rose, leaving many investors in a big mess. This incident exemplifies how anything can happen in a crypto market, even when assets are associated with high-profile figures.
Chaos began with the launch of the Trump Coin on the Solana blockchain, and social media posts suggested the token was somehow linked to former President Donald Trump’s son, Eric Trump. Quite cryptic, a new interest in crypto and DeFi was accorded to Eric Trump’s recent tweet, the one where he had hinted at a big announcement for a possible launch with Trump Coin. Ryan Fournier, chair of Students for Trump, extended the rumours further by suggesting that Trump Coin may be the official Trump cryptocurrency.
The Rise and Fall of Trump Coin
Rumours now firmly indicate real activity; there was a deluge of trading. Trump Coin, indeed, traveled 120% in value in hours on the back of millions now invested in the token. According to CoinGecko, the token rallied to as high as $0.022 before seeing over an 80% drop a short while later. The drop had been initiated by a tweet from Eric Trump himself, warning users against “fake tokens” and clarifying that no official Trump project had been announced.
In an interview, Donald Trump Jr. clarified the confusion: “I love memecoins and that culture. I love what those guys are doing … But I just have to ensure that people understand that you can’t conflate one thing with another.” No token, he said, should be associated with the Trump family unless it came directly from them.
Speculation and Confusion Around Trump Coin
Everything from Trump Coin’s meteoric rise to its steep fall had many in the crypto community raising questions about the legitimacy of the token. Members quickly pointed fingers at Kanpai Labs, creators of the Kanpai Pandas NFT, who promoted the token well before it was launched. It was reported that the creator, who goes by “Bags,” claimed the Trump family was involved in the coin launch before accusing them of backing out at the last minute.
It doesn’t stop there; Trump Coin is not the only Trump-branded cryptocurrency that has happened to make waves. Other tokens, like Super Trump with its ticker STRUMP and MAGA with its ticker TRUMP, have surged accordingly. These tokens came up with a market cap of $14 million and $140 million, respectively. Like Trump Coin, these tokens have capitalised on the former president’s name and his supporters’ fervour.
Conclusion: The Volatile World of Trump Coin and Crypto Speculation
The saga of the Trump Coin offers a big lesson on how the cryptocurrency market has often been speculative and unpredictable. Taking shots at short-term profits is tempting, but one must be more cautious with an invisible token. As expressed by Donald Trump Jr., “Speculation is not an endorsement,” so a lot of vigilance must be applied toward verifying information before making investment decisions.
Though the saga of the Trump Coin might have ultimately cost many investors dearly, it also points to a larger problem of transparency and regulation within the crypto space. While this space keeps evolving, incidents like this could be stepping stones toward more rigorous oversight that better protects investors in the future. Learn more about events in the crypto world from Deythere.
