CAR Memecoin Crashes 97% Within Two Days

The Central African Republic’s (CAR) memecoin, its most recent significant attempt to enter the cryptocurrency market, has suffered a major setback. Its newly launched memecoin, CAR, has plummeted nearly 97% from its peak in less than two days.

A Rocky Start for the CAR Memecoin

Notably, the CAR memecoin entered the market with grand promises, showing an initial surge that did not take time to nosedive. 

Meanwhile, reports indicate that the coin peaked at $0.89 shortly after launch, reaching a market valuation of nearly $900 million.

However, within 24 hours, its price crashed to just $0.029, slashing its market cap to approximately $29 million and wiping out nearly all its gains.

Trump’s Influence and Market Volatility

It is worth mentioning that one factor contributing to CAR’s downfall is the broader volatility in the cryptocurrency market. 

Recent U.S. President Donald Trump tariff announcements have triggered a broader sell-off, particularly affecting memecoins.

For instance, Trump’s official memecoin, launched in January, has also suffered a steep decline, losing about 79% of its peak value. 

Sadly, this negative market sentiment has made it even harder for new and untested projects like the CAR memecoin to gain traction.

Skepticism toward government-backed digital currencies is also nothing new. In 2022, the Central African Republic launched Sango Coin as a national cryptocurrency, but it failed to gain adoption. 

Given this history, critics argue that the government must do more to ensure transparency and stability if it hopes to regain investor confidence.

Additionally, the market is currently plagued by security concerns and scams. High-profile hacks have recently compromised the X accounts of Nasdaq, former Malaysian Prime Minister Mahathir Mohamad, and even the U.S. SEC, further shaking investor trust.

Hope Amid Uncertainty?

According to its website, the CAR project allocated 35% of its 1 billion tokens to national development and 25% to creators and businesses. 

Likewise, the remaining tokens were divided into 20.7% for liquidity, 10% for charity, and 9.3% for public distribution. A portion of the development, charity, and public funds was available at launch.

Despite the token’s nosedive, President Faustin-Archange Touadéra remains optimistic about its potential, particularly its role in funding development projects. In a recent update, he announced that $50,000 worth of tokens would be allocated toward rebuilding a deteriorating high school.

He wrote, “This initiative will help us give students a chance for a better future.”

While some have praised this move, financial analysts warn that philanthropy alone will not restore confidence in the project.

Meanwhile, the memecoin market is facing its most significant sell-off in months, with Shiba Inu (SHIB) and PEPE holders exiting at record speed.