The Central African Republic (CAR) has launched its own memecoin, following the trend set by former U.S. President Donald Trump. However, as reported by the Financial Times, the token’s value has plummeted by 95% within days of its release, raising doubts about its legitimacy and effectiveness as a fundraising tool.
A Bold but Risky Experiment
President Faustin-Archange Touadéra announced the launch of the $CAR memecoin on X, calling it an experiment to unite people and support national development. Memecoins, which rely on hype and speculation rather than real-world utility, have often been criticized as risky investments, similar to pump-and-dump schemes.
Despite its ambitious goals, the token faced immediate setbacks. Its value collapsed from a peak of $350 million to just $37 million within two days. Adding to the skepticism, X suspended the government’s promotional account, and deepfake detection tools flagged the president’s announcement video as potentially altered. While a government spokesperson insisted the launch was real, the controversy has fueled concerns about transparency.
Following Trump’s Lead
CAR’s move into memecoins mirrors Trump’s recent memecoin ventures, which have been widely criticized for enabling scams and misleading investors. According to the project’s website, 35% of funds raised from $CAR are meant for “country development,” but there is little clarity on how the money will be used.
This isn’t the first time CAR has attempted to embrace cryptocurrency. In 2022, the nation briefly adopted Bitcoin as legal tender, following in El Salvador’s footsteps. However, the policy was overturned after facing backlash from the International Monetary Fund and local regulators. With low internet penetration and a struggling economy, crypto adoption remains a tough sell for the country’s citizens.
A Country in Crisis
The CAR remains one of the world’s poorest nations, with a GDP per capita of just $549—lower than Somalia. The country has faced ongoing violence for over a decade, with the government relying on Russian-backed Wagner Group forces to maintain control. Political instability and underdeveloped financial systems make it unlikely that a speculative cryptocurrency will bring meaningful change.
Despite these challenges, Touadéra remains committed to pushing digital assets. In a video posted on Monday, he called the memecoin’s launch a “resounding success” and encouraged supporters to believe in the long-term vision.
The Reality of Memecoins
The rapid crash of $CAR highlights the dangers of memecoins as a financial tool. While they can generate short-term excitement, they rarely provide lasting value. Investors who buy in at the peak often suffer massive losses, and projects launched in unstable economies face even greater risks.
For CAR, this failed experiment raises serious questions about the government’s priorities. Instead of gambling on volatile cryptocurrencies, the country might benefit more from focusing on real economic development and financial stability.
