CAR Memecoin: A Volatile Debut and Its Implications

In the fast-paced world of cryptocurrency, the launch of a new token often sparks excitement, controversy, and speculation. Such was the case with CAR, a memecoin introduced by the Central African Republic (CAR). Unveiled late Sunday, it soared to an impressive peak of $0.89 the following morning, momentarily boasting a market capitalization of nearly $894 million. However, the enthusiasm was short-lived. Within just over a day, the coin plummeted by 96.7%, reaching a low of merely $0.029, slashing its market cap to approximately $29 million. Over the same period, trading volume remained high, amounting to $143.4 million, according to DEX Screener.

The broader memecoin market was already under pressure, impacted by former U.S. President Donald Trump’s recent tariff announcements. His own official token, launched on January 18, declined sharply, currently standing around 79% below its peak value at $16.11. Similarly, GMCI Meme (GMMEME), an index tracking leading memecoins, tumbled nearly 40% before stabilizing slightly.

Skepticism Surrounding CAR’s Launch

Amid the dramatic price fluctuations, questions arose about the legitimacy of the CAR memecoin. The country’s president, Faustin-Archange Touadéra, championed the project, presenting it as an example of how “something as simple as a meme” could foster national development and elevate the Central African Republic’s global presence. “As the second president in the world to adopt Bitcoin as legal tender, I have always recognized the potential of crypto on a global scale,” he stated on X (formerly Twitter) during the token’s announcement.

However, the crypto community met this initiative with skepticism. Recent incidents of high-profile X accounts being hacked to promote fraudulent tokens—cases involving accounts linked to Nasdaq and former Malaysian Prime Minister Mahathir Mohamad—only heightened concerns. Additionally, the low production quality of President Touadéra’s launch video and the sudden suspension of the token’s official X account further eroded confidence in the project.

In response to these concerns, the President assured the public that his administration was collaborating with X to reinstate the memecoin’s official page. He also emphasized security measures, stating that the token’s supply had been “securely locked” through the cryptocurrency management platform Streamflow. Subsequently, a new X account for the memecoin was established.

Tokenomics and Utility

According to its official website, the CAR memecoin follows a structured allocation model. Of its total supply of 1 billion tokens, 35% is designated for national development initiatives, while 25% is reserved for “creators and company.” Additional distributions include 20.7% allocated for liquidity, 10% for charitable causes, and 9.3% for public distribution. A portion of the development, charity, and public distribution allocations was made available at launch, though most funds remain locked with staggered releases over the next 24 months.

Despite these structured allocations, the project’s website explicitly states that the CAR token is not intended as an investment asset. Instead, it is described as a “symbol of unity”, created purely for entertainment and community engagement, devoid of intrinsic financial value.

Long-Term Vision and National Projects

Despite widespread doubts, President Touadéra remains steadfast in his vision for the CAR token, frequently promoting its potential benefits. On Monday, he reaffirmed his gratitude to the global crypto community for supporting the initiative, declaring its launch a success. “We are building for the long term,” he assured his followers.

Backing his words with action, the President linked the memecoin to tangible development efforts. He shared a video highlighting the deteriorating state of a high school in the country, emphasizing the risk students faced due to crumbling infrastructure. In a pledge to address this crisis, he announced that $50,000 worth of CAR tokens from the country’s development pool had been allocated for the rehabilitation of the school, with necessary repairs and furnishing set to take place over the next 30 days.

The Central African Republic’s Crypto Engagement

This is not the first instance of the Central African Republic engaging with cryptocurrency. In 2022, the nation became the second country—after El Salvador—to legalize Bitcoin as an official currency. However, much like El Salvador, CAR later repealed that legislation.

That same year, the government ventured further into the blockchain space with the launch of Sango Coin, a national cryptocurrency designed to facilitate a digital economy based on the country’s valuable mineral resources. This marked another ambitious, albeit controversial, step in CAR’s apparent commitment to integrating cryptocurrency into its financial ecosystem.

Conclusion

The launch of the CAR memecoin has been nothing short of turbulent. Backed by the country’s president and positioned as more than a mere token—supposedly serving national development—the project has faced significant skepticism from the outset. Its dramatic price swings, coupled with security concerns and a chaotic communications rollout, have only deepened doubts about its viability.

Yet, despite the controversies, the initiative speaks to a broader trend of nations exploring crypto-based economic models. Whether the CAR memecoin establishes itself as a pioneering success or fades into obscurity remains to be seen, but its rapid rise and fall serve as yet another cautionary tale in the unpredictable world of digital assets.