The rise and early fall of the Central African Republic’s experimental cryptocurrency
The Central African Republic (CAR), under the leadership of President Faustin-Archange Touadéra, has ventured into the world of cryptocurrency with an experimental memecoin aimed at fostering national unity and economic development.
However, just days after its launch, the token has suffered a dramatic collapse as a result of questions raised about its legitimacy and viability.
President Touadéra, a mathematics professor, took to X (formerly Twitter) to announce the launch of $CAR, a memecoin he described as an innovative tool to bring people together and elevate the Central African Republic onto the global stage.
"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," he posted.
Despite the ambitious vision, the memecoin’s value plummeted by 95% within 24 hours of its release. Initially surging to a market capitalisation of $350 million, the token’s worth nosedived to $37 million by Tuesday, with individual coin prices dropping from their peak to just $0.04, according to data from CoinMarketCap.
Early Challenges and Controversy
The launch, which took place on Sunday, encountered immediate setbacks. X suspended an official government account created to promote the memecoin after users raised concerns about its legitimacy, Financial Times reports. Additionally, deepfake detection tools flagged Touadéra’s announcement video as suspicious, fuelling scepticism about the project.
However, Albert Yaloké Mokpeme, a government spokesperson, confirmed that the president had "officially announced the launch" of the cryptocurrency. Touadéra also introduced a new website and X account, reaffirming his commitment to the initiative through continued posts from his verified account.
Understanding Memecoins
Memecoins are a category of cryptocurrency that relies entirely on social media hype and trader speculation. Initially inspired by viral internet moments and popular culture references, these tokens have increasingly become a tool for rapid fundraising. However, critics argue that they often resemble “pump-and-dump” schemes, where early investors cash out at the expense of later buyers.
