However, due to concerns about its legitimacy and viability, the token has experienced a dramatic collapse just days after its launch.
Math professor President Touadéra announced the launch of $CAR, a memecoin he called an innovative tool to unite people and bring the Central African Republic to the international stage, on X (formerly Twitter).
“We are launching $CAR – an experiment designed to show how something as simple as a meme can unite people, support national development, and put the Central African Republic on the world stage in a unique way,” wrote the post.
Within 24 hours of its launch, the memecoin’s value fell by 95%, despite the audacious plan. According to CoinMarketCap data, the token’s value plummeted to $37 million by Tuesday after initially skyrocketing to a market capitalization of $350 million. The prices of individual coins also fell from their peak to just $0.04.
Early Challenges and Controversy
The launch, which happened on Sunday, was immediately marred by problems. After users expressed doubts about the legitimacy of the memecoin, X suspended an official government account that was set up to promote it, according to the Financial Times. Furthermore, Touadéra’s announcement video was flagged as suspicious by deepfake detection tools, which increased doubts about the project.
The president had “officially announced the launch” of the cryptocurrency, according to government spokesperson Albert Yaloké Mokpeme. Along with launching a new website and X account, Touadéra continued posting from his verified account, reaffirming his dedication to the project.
Understanding Memecoins
A subset of cryptocurrencies known as memecoins is solely dependent on trader speculation and social media hype. These tokens, which were first sparked by internet sensations and pop culture allusions, have grown in popularity as a means of quick fundraising. Critics counter that they frequently resemble “pump-and-dump” schemes, in which early investors profit at the expense of subsequent purchasers.
