CAR Meme Coin Plunges 70% Amid Scam Allegations and Unclear Project Details
The Central African Republic’s CAR meme coin has suffered a dramatic 70% decline shortly after its launch, following allegations of fraud and a lack of transparency regarding its development.
Key Highlights
- CAR meme coin sees a sharp decline despite being backed by the nation’s president.
- The crash follows concerns over potential fraud and a lack of clear project details.
- The token lost 70% of its value shortly after launch, raising red flags among investors.
CAR Meme Coin Faces Sharp Decline Post-Launch
The CAR meme coin, introduced by Central African Republic President Archange Touadéra, initially gained attention as an innovative experiment. However, the token’s price plummeted from $0.79 to $0.19 shortly after launch, leading many in the crypto community to suspect a possible rug pull due to unclear tokenomics and missing project details.
Why Did CAR Meme Coin Crash?
President Touadéra announced the meme coin in a post on X (formerly Twitter) on February 10, positioning it as an initiative to demonstrate how a meme-based project could drive economic growth. Given his previous role in making Bitcoin legal tender in the country, the announcement initially generated excitement, with some traders making massive profits in a matter of seconds.
However, the enthusiasm quickly faded as concerns emerged over the legitimacy of the project. Reports surfaced that the official website linked in the President’s post was inaccessible. Crypto analysts, including WuBlockchain, pointed out that the project lacked transparency, leaving many traders uncertain about its credibility.
Jupiter Founder Sheds Light on the Situation
Solana DEX Jupiter’s founder, known as “meow” on X, attempted to gather further information regarding the project. In a series of posts, he mentioned reaching out to the CAR office for clarification. He also requested the President’s team to update the homepage link, as it initially directed users to the Jupiter exchange homepage instead of a dedicated token swap link.
Jupiter verified the deployment team by conducting multiple live on-chain transactions. However, no off-chain verification has been made, leaving unanswered questions about the project’s authenticity, ownership of the remaining circulating supply, and why the domain was suspended by Namecheap.
CAR Meme Coin Price Plummets Further
Following these developments, CAR meme coin’s price fell by 75% within a single day, currently trading at $0.1961. The token’s 24-hour range fluctuated between $0.1925 and $0.7927, with traders remaining skeptical due to the ongoing uncertainties.
While an official statement addressing these concerns could potentially aid in a recovery, the overall bearish sentiment in the broader crypto market adds further pressure on the meme coin. The volatility surrounding this project underscores the high-risk nature of cryptocurrency investments.
