The Central African Republic (CAR) memecoin, which launched on Sunday, saw a dramatic price collapse of 88.7% in just over 24 hours amid growing confusion over its legitimacy.
The memecoin, which had initially surged to $0.89 on Monday morning—giving it a market cap of nearly $894 million—has since plummeted to $0.03309, wiping out more than $860 million in value.
A Promising Start Followed by a Sudden Collapse
In the hours following its launch, the CAR memecoin witnessed rapid price appreciation, fueled by speculation and interest in a nation-backed digital asset. However, its value nosedived by nearly 88% in 24 hours, leaving investors reeling.
The total market capitalization now stands at $33.11 million, while the 24-hour trading volume is at 83.43%, reflecting the high volatility and panic selling.
President Touadéra’s Vision and Growing Skepticism
Faustin-Archange Touadéra, the President of the Central African Republic, took to X (Twitter) to announce the launch, describing it as an experiment meant to unite people and support national development. He positioned the initiative as a way to put CAR on the global stage through blockchain technology.
However, despite the ambitious claims, the project was met with widespread scepticism. Given the recent surge in crypto scams and fraudulent token launches, many in the industry doubted its legitimacy.
The scepticism was further fueled by the lack of transparency surrounding the token’s development and governance.
Security Concerns: Phishing Scams and Hacked Accounts
Further raising alarm, several cryptocurrency data aggregators listing the CAR memecoin were found to be redirecting users to phishing sites, according to cybersecurity experts. In response, the project’s official X account has been suspended, and its website is currently inaccessible.
Investigations revealed that the CAR Telegram community featured a fake “Safeguard” bot, identified as a phishing tool by security firm Scam Sniffer. The firm had previously warned investors about fraudulent Safeguard verification bots that targeted crypto users on Telegram.
Additionally, concerns heightened after multiple high-profile X accounts were recently hacked to promote fraudulent tokens, including a notorious breach of Nasdaq’s official X account. These incidents have only deepened fears that CAR’s memecoin may have been part of a larger coordinated scam.
The spectacular rise and fall of CAR’s memecoin serve as a cautionary tale for crypto investors navigating the high-risk world of memecoins. While nation-backed cryptocurrencies are gaining traction, transparency and security remain critical concerns.
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