Central African Republic's Memecoin Plummets 96.7% Amid Market Volatility
Central African Republic's Memecoin Collapse
The Central African Republic's (CAR) newly launched memecoin experienced a dramatic collapse, plummeting 96.7% from its peak value of $0.89 to a low of $0.029 within just over 24 hours. According to DEX Screener data, its market cap also shrunk from $894 million to approximately $29 million during this period.
Memecoin Market Faces Challenges
The broader memecoin market has faced a challenging week, influenced by external factors such as tariff announcements from U.S. President Donald Trump. The GMCI Meme index, which tracks leading memecoins, declined by about 40% before seeing a slight recovery. Trump's official memecoin, launched on January 18, has also struggled, dropping 79% from its peak and currently trading at $16.11.
Launch and Skepticism
President Faustin-Archange Touadéra announced the $CAR memecoin as an "experiment" to showcase the unifying power of memes, support national development, and attract global attention to the Central African Republic. However, the launch was met with skepticism due to concerns over legitimacy, particularly following recent high-profile social media hacks and fake token promotions.
Initial Setbacks and Token Security
The initial announcement was further marred by issues such as a poorly produced greenscreen video and the suspension of the memecoin's official social media account. Efforts are underway to restore the account, and President Touadéra has assured that the token supply is securely locked using Streamflow's token management infrastructure.
Token Allocation and Purpose
The CAR project's website outlines the token allocation, with 35% dedicated to national development, 25% to creators and the company, and the remainder distributed among liquidity, charity, and public distribution. The website also includes a disclaimer emphasizing that the $CAR memecoin is intended for fun and community engagement, not as a financial investment.
President's Commitment and Community Impact
Despite the significant market drop, President Touadéra remains committed to the $CAR memecoin and its initiatives. He expressed gratitude to the crypto community and highlighted the token's use in funding the repair and furnishing of a local high school, allocating $50,000 worth of tokens to the project.
Central African Republic's Crypto History
The Central African Republic has previously engaged with cryptocurrency, including adopting Bitcoin as legal tender in 2022, which was later repealed, and launching its national cryptocurrency, Sango Coin, to establish a digital economy based on its mineral resources.
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