Central African Republic Memecoin Announcement Raises Suspicion Amid Soaring Market Cap

The Central African Republic (CAR) has made waves in the cryptocurrency world with the launch of an official memecoin, but the announcement has raised concerns over its legitimacy. On February 9, President Faustion-Archange Touadera shared news of the country’s new memecoin on X (formerly Twitter), describing it as an “experiment” aimed at promoting national development and elevating the country’s presence on the global stage. Within hours, the token surged in value, reaching a market capitalization of $530 million.

However, not everything about the launch is as it seems. Two deepfake AI detection tools flagged the video announcement by President Touadera as suspicious, calling into question the authenticity of the message. One of the models detected an 82% chance that the video was a deepfake, while others, including Avatrify and Deepware’s own checker, did not raise alarms. This discrepancy has fueled skepticism about whether the video was indeed made by the president or if the account had been compromised.

Concerns Over the Memecoin’s Authenticity

The memecoin was launched on the Solana-based platform Pump.fun, but the process has sparked red flags among observers. Yokai Ryujin, the founder of Unrevealed XYZ, pointed out that the memecoin’s domain registration seemed unusual. Registered just days before the announcement, the domain raised suspicions about the professionalism of the operation, as Ryujin noted that such a quick registration would not be typical for a national government.

In response to these concerns, Namecheap, the domain provider for the memecoin, suspended the account, though the official site, car.meme, remains live at the time of publication.

Further fueling doubts, many pointed out the strange nature of the tweet itself. The post, made at midnight local time, seemed odd for a national leader and was written in English, despite the country’s official language being French. The lack of a French version of the announcement also struck some as uncharacteristic of an official government message.

Adding to the intrigue, the official memecoin account on X, @Carmeme_news, was suspended shortly after the announcement. President Touadera later clarified that he was working with X to restore the account.

Hacks and Scams in the Crypto World

The rise of memecoin scams has become a notable trend in the cryptocurrency space, and in recent weeks, several high-profile hacks have targeted official social media accounts to promote fraudulent tokens. The hacking of official X accounts, including those of former Malaysian Prime Minister Ismail Sabri Yaakob and the Solana DEX aggregator Jupiter, to push memecoin scams has only added to the skepticism surrounding the CAR memecoin launch.

Tokenomics and Distribution

While the launch of the CAR memecoin has drawn controversy, the tokenomics appear to be fairly transparent. Data from DexScreener shows that a significant portion of the token supply is held in a few wallets. One wallet contains 33.31% of the supply, and another holds 25%. Smaller portions are held in other wallets, including one that could represent funds allocated for charity.

Notably, the 20% of the supply promised for liquidity has not yet been added to the liquidity pool, which could raise concerns about the token's long-term viability.

A History of Cryptocurrency Ventures

The Central African Republic is no stranger to cryptocurrency, having made headlines in April 2022 when President Touadera adopted Bitcoin as legal tender. This move came alongside the passage of a crypto regulatory framework designed to establish the country as a crypto-friendly nation. In the wake of this, the CAR launched Sango Coin, a cryptocurrency aimed at attracting foreign investment by offering citizenship to token holders.

However, just a year later, in March 2023, the CAR reversed its decision to make Bitcoin and other cryptocurrencies legal tender after facing backlash from other members of the Economic and Monetary Community of Central Africa. This decision to repeal the legislation has added to the sense of uncertainty surrounding the country’s cryptocurrency endeavors.

Conclusion: A New Chapter or Another Scam?

The launch of the CAR memecoin raises several questions about the country’s cryptocurrency ambitions. While the initial market reaction has been overwhelmingly positive, with the token reaching a market cap of over $500 million, the suspicions surrounding the video announcement and the lack of transparency in the token’s launch process suggest that this could be another in a series of memecoin scams plaguing the crypto space.

As the situation continues to unfold, the Central African Republic may find itself at a crossroads—either solidifying its position as a pioneer in the world of cryptocurrency or facing further scrutiny and potential backlash from both the international community and the crypto industry.