CAR Token Crash: How a Government-Backed Memecoin Lost 70% in Days

The cryptocurrency market has witnessed yet another turbulent saga with the rise and fall of CAR, a government-backed memecoin launched under the name of Central African Republic (CAR) President Faustin-Archange Touadéra. 

What initially seemed like a groundbreaking national initiative quickly unraveled into a speculative frenzy, followed by a massive price collapse amid scam allegations and security concerns.

CAR Token: The Meteoric Rise and Inevitable Crash

The announcement of CAR memecoin sparked significant enthusiasm in the crypto space, given the Central African Republic's historical embrace of Bitcoin as legal tender. However, doubts regarding the legitimacy of the project surfaced almost immediately. 

The President's X (formerly Twitter) post—written in English rather than the nation's official languages, French and Sango—raised eyebrows. Skepticism deepened as the project's official Telegram group was found to contain harmful phishing links, flagged by Scam Sniffer, a blockchain security firm.

Despite these concerns, the CAR token soared to an astonishing market cap of nearly $900 million, with early investors riding the wave of speculation. One trader reportedly turned a modest $5,000 investment into a staggering $12 million profit within seconds of the announcement. 

However, the hype proved unsustainable, and the price soon plummeted by over 70%, sparking widespread discussions about the token's authenticity and viability.

Read Also: Africa’s First National Meme Coin: The Central African Republic’s $CAR Token Sparks Global Frenzy

Security Concerns and Allegations of Market Manipulation

The CAR memecoin project faced immediate scrutiny after reports emerged of malicious links associated with its Telegram channel and official website. 

Scam Sniffer revealed that scammers had exploited the CAR hype, embedding fake websites through Linktree and Cloudflare CAPTCHA verification pages to deceive investors into executing harmful code. 

The situation escalated when CoinGape and WuBlockchain confirmed that the project’s official website had been taken down.

Jupiter, a decentralized exchange (DEX) on Solana, also became entangled in the controversy. Its founder, known as "meow" on X, disclosed efforts to contact the CAR office for clarity on the project’s legitimacy. 

Meow stated that while Jupiter had verified the deployment team through on-chain transactions, no off-chain confirmation was obtained, further fueling uncertainty about the project’s origins and intent.

Price Action: The Unraveling of CAR

Following its initial surge to $0.79, the CAR token experienced a swift and brutal downturn, crashing to a low of $0.19. As of press time, CAR is struggling to find stability, with intraday fluctuations reflecting extreme volatility.

• 24-hour High: $0.7927

• 24-hour Low: $0.1925

• Current Price: $0.1961

The dramatic price drop, combined with allegations of fraudulent activity and a lack of official clarity, has led traders and investors to adopt a bearish outlook on CAR. 

Unclear tokenomics, the sudden disappearance of the project’s website, and the suspension of its official X account have only reinforced suspicions of a potential rug pull.

Read Also: Is Steem The Next Big Crypto? Analyzing Its Market Surge & Future Potential

What’s Next for CAR?

The CAR memecoin’s trajectory underscores the highly speculative and risky nature of cryptocurrency investments, particularly within the memecoin sector. 

Without an official off-chain statement from the Central African Republic’s government confirming the legitimacy and intent of the token, it remains a precarious asset with high uncertainty.

While an official confirmation could potentially trigger a price rebound, the broader bearish sentiment in the crypto market poses additional hurdles for recovery. Investors remain cautious, awaiting further developments and regulatory responses to clarify CAR’s status.

Final Thoughts

The rapid ascent and collapse of CAR illustrate the dangers of investing in tokens lacking transparency and clear governance. 

While memecoins often thrive on hype and speculation, the involvement of a national government introduced an unprecedented layer of complexity to the CAR case. 

Moving forward, due diligence and heightened scrutiny will be essential for traders navigating the volatile landscape of speculative crypto assets.

FAQ

Q: What is CAR token? 
A: CAR is a government-backed memecoin announced by Central African Republic President Faustin-Archange Touadéra, intended as an experimental crypto project.

Q: Why did CAR token's price drop? 
A: The price crashed over 70% due to scam allegations, unclear tokenomics, and concerns regarding the legitimacy of the project.

Q: Was CAR token confirmed as legitimate? 
A: There has been no official off-chain confirmation from the CAR government, leading to skepticism and uncertainty.

Q: What security concerns were raised about CAR token? 
A: Blockchain security firm Scam Sniffer discovered phishing links associated with the project, and scammers allegedly manipulated information using fake verification pages.

Q: Can CAR token recover in the future? 
A: A price rebound is possible if an official confirmation emerges, but broader bearish market conditions and unresolved concerns pose significant risks.