The Central African Republic announced the launching of its national memecoin, $CAR, on February 9, 2025. According to plans announced by President Faustin-Archange Touadéra, it is designed to give the country more global visibility in terms of naming and development of economic opportunities. Though controversial, there have been a lot of market swings in recent days.
Rapid Rise and Crash of $CAR Token
The market capitalization of the $CAR token rose meteorically, hitting a high of $900 million just hours after its launch. That was up 1,210% in a matter of hours, driven almost entirely by the excitement surrounding its endorsement by a national leader.
But just as quickly, the token’s price cratered 87% to around $125 million. Some early investors copped huge gains; one trader reportedly turned $5,000 into $12 million in three hours. The rapid swings led to accusations of a pump-and-dump scheme—common in the memecoin space.
Legitimacy Questions Arise
The legitimacy of the $CAR token has been questioned. Various aspects have built this perception: First, it was announced in the middle of the night; certainly, such timing raises questions as to the legitimation of the said action.
Secondly, while French and Sango are the official languages of CAR, the majority of the announcement was in English, so many thought it could be a hack.
The National Assembly did not confirm the launch with alacrity, fueling doubts. To cap it all off, a few days ago, there was this video from President Touadéra that added to the mix, as AI detection tools immediately flagged it as potentially fraudulent. Indeed, he used this video message to reassure, but investors just grew even more concerned.
Market Impact and Outlook
The current market cap for its $CAR token is about $36.3 million, down sharply from where it first issued. This kind of volatility has been compared with other national cryptocurrency initiatives, especially the adoption of Bitcoin by El Salvador. While the CAR initiative may represent a new way of fundraising, its sustainability is very much in question.
Tokenomics shows that 35% of the total supply is for national development projects, so it might have some commitment toward the improvement of the economy. However, long-term viability is not expected for this project.
The launch of the $CAR memecoin is a big step for the African cryptocurrency landscape. While that opens a window for creative economic strategies, the surrounding controversy and volatility flag high risks.
As the situation develops, traders and investors alike will be watching whether $CAR is able to find stability in its march toward those ambitious goals or whether it’ll become just one more cautionary tale from the crypto space.
