On February 10, the Central African Republic (CAR) made an unexpected entry into the crypto market with the launch of its own memecoin, $CAR. However, the project has raised numerous questions and allegations of a potential scam.
Launch of $CAR and Rapid Growth
$CAR debuted on the Solana-based platform Pump.fun. Within a day, the token's market cap soared to $590 million but settled at around $272 million the following day. President Faustin-Archange Touadéra described the launch as an experiment for national development and global recognition.
Authenticity Doubts and Reactions
Despite the excitement, skepticism surrounds the project's authenticity. A video statement purportedly from President Touadéra was flagged as a potential deepfake by AI tools. Moreover, the announcement was made in English at midnight locally, and domain registration details raise doubts about its legitimacy. Namecheap has since suspended the domain registration.
Tokenomics and Potential Implications
The tokenomics analysis reveals that 33.31% of the total supply is held in a single wallet, raising centralization concerns. Additionally, 25% is controlled by another address. This data puts into question whether $CAR is a state-backed initiative or merely a speculative asset.
The launch of $CAR has garnered mixed reviews and numerous questions about its authenticity and objectives. Whether it is state-supported or remains an experiment is yet to be seen.
