Unraveling the RTR Crypto Crash: The Full Story Behind the Trump Rumor Meltdown

A new cryptocurrency, PolitiFi meme coin RTR (Restore the Republic), launched on the Solana blockchain on Thursday, experienced a meteoric rise followed by a catastrophic crash after being falsely associated with former U.S. President Donald Trump. The incident has sparked controversy and raised questions about the influence of social media and insider trading in the volatile world of meme coins.

The Launch and Initial Hype

The coin was introduced with claims that Trump supported it amid a backdrop of speculative tweets from Eric Trump and Donald Trump Jr. expressing enthusiasm for DeFi and hinting at an upcoming major announcement.

These tweets fueled rampant speculation that the new token, RTR, was linked to the Trump family. On-chain data indicates that several insiders secured significant portions of the token supply before its public promotion, leading to massive profits during the initial price surge.

Reputation Boost from Icebagz

A few hours after the coin's launch, it was revealed that the founder of the well-known IP NFT brand Kanpai Panda, Icebagz, was behind the coin. This revelation further bolstered the token's credibility, given Icebagz's reputation in the NFT space. As a result, RTR's market cap continued to climb, reaching as high as $155 million with a DEX volume of more than $100M.

Influencer Endorsements

The token received further momentum from endorsements by several prominent influencers. Ryan Fournier, Chair of the Students for Trump movement, tweeted that RTR was rumored to be the Trump coin, driving more speculation.

Additionally, the business development head of Arbitrum, known as SizeChad, tweeted about RTR, mistakenly confirming it as Trump's project and even sharing a now-deleted video clip. SizeChad later claimed that he lost $60,000 on the coin, though many investors alleged that he was an insider who likely booked substantial profits before the crash.

Another influencer, Wizard of Soho, who manages a popular Telegram group, also tweeted about the coin, boasting about sharing the token address early in his chat. However, after the token collapsed, Wizard of Soho claimed he did not promote the coin and reported a personal loss of $350,000.

The Crash

The turning point came when Eric Trump publicly refuted the claims that RTR was associated with the Trump family. The denial triggered an immediate and dramatic sell-off, causing the token's market cap to plummet by 99% within minutes.

 Investors who had bought into the hype were left with significant losses. At the same time, on-chain investigations by lookonchain revealed that five insider wallets had profited over $4 million within six hours, turning an initial $882,000 investment into $5.05 million.

Donald Trump Jr.'s Q&A Clarification

In the aftermath of the crash, Donald Trump Jr. conducted a Q&A session on Rumble to address the rumors and clarify the Trump family's position.

He explained that the DeFi project they are planning to launch is not a meme coin but a serious initiative aimed at challenging big banks and providing banking services to the unbanked. Trump Jr. emphasized that the upcoming project would have no connection to any speculative meme tokens like RTR.

The Aftermath and Reactions

Following the collapse, Icebagz admitted in an influencer-filled Telegram chat that he had launched the coin, asserting that he had met with Donald Trump Jr. for two hours and had receipts to prove it. Icebagz claimed that Trump's son had informed him just 10 minutes prior to his tweet that he would be mentioning the RTR token.

Despite these claims, the damage had already been done, with many investors taking to social media to express their outrage, accusing the project of being an "insider cabal" designed to defraud unsuspecting buyers.

This incident is not an isolated one. Just two months prior, another token named $DJT was launched amid rumors that it was backed by Barron Trump, Donald Trump's son. Although the Trump family never confirmed or denied involvement, the token, launched by controversial figure Martin Shkreli, followed a similar trajectory, with insiders holding large supplies and the price eventually collapsing 99% after being abandoned.

Future Implications

As the U.S. presidential elections approach in November, concerns are mounting that more such schemes might emerge, exploiting the names and reputations of public figures to manipulate the cryptocurrency market. Rumors and social media hype can lead to massive financial swings, often to the detriment of retail investors.

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