CAR Memecoin Decline

The memecoin of the Central African Republic, CAR, collapsed 96.7% in just over 24 hours from its Monday peak amid confusion over its legitimacy.

Launched late Sunday, CAR rose to a peak price of $0.89 by Monday morning, equating to a market cap of around $894 million. However, it subsequently fell to a low of $0.029 by early Tuesday, dropping its market cap to approximately $29 million, with a total trading volume of $143.4 million in just 24 hours.

The memecoin sector suffered significantly after U.S. President Donald Trump’s recent tariff announcements, causing a drop of about 40% in the GMCI Meme index over a few days. Trump’s own memecoin, launched on January 18, is down approximately 79% from its peak, currently at $16.11.

CAR Launch Skepticism

President Faustin-Archange Touadéra announced the $CAR launch via his official X account, stating its objective is to unite people, support national development, and elevate the Central African Republic’s global presence. He emphasized the potential benefits of cryptocurrencies.

However, skepticism loomed over CAR token’s legitimacy, particularly due to recent high-profile hacks promoting fake tokens. The quality of President Touadéra’s announcement video and a subsequent suspension of the memecoin’s official X account further raised doubts about the project.

Touadéra mentioned that efforts to restore the memecoin’s account were underway, stating the token supply had been securely locked through the management platform Streamflow. A new X account for the memecoin was later launched.

According to the project’s website, 35% of the 1 billion token supply is allocated to country development, 25% to creators and companies, with additional percentages reserved for liquidity, charity, and public distribution. Specific portions of these allocations will unlock gradually over two years.

A disclaimer on the website clarifies that the Central African Republic meme is not intended as a financial investment, emphasizing its purpose for fun and community engagement.

CAR Support Initiatives

Despite the skepticism surrounding CAR’s launch, President Touadéra has been active in promoting the token and its initiatives. He publicly thanked the crypto community for their support, asserting that they are committed to long-term development.

In a recent video, he highlighted the disastrous conditions of a high school, noting that funds from CAR would facilitate essential repairs, aiming to secure a better future for its students. $50,000 will be allocated from the country development pool to aid the school’s renovation process within the next 30 days.

The Central African Republic previously made headlines in 2022 by becoming the second nation to accept bitcoin as legal tender, following El Salvador; however, this legislation was later repealed. That same year, the country introduced Sango Coin, a national cryptocurrency aimed at establishing a digital economy by tokenizing its mineral resources.