The Central African Republic (CAR), a nation striving to elevate its global status, has officially launched its own meme coin, named $CAR. This move comes as CAR continues its commitment to digital assets, having previously adopted Bitcoin as a legal tender in 2022. Despite possessing rich gold and diamond reserves, CAR remains one of the world's poorest and most underdeveloped nations, plagued by years of rebel violence and economic instability.

President Faustin-Archange Touadera announced the launch via an X post, articulating that the $CAR meme coin is specifically targeted at aiding national development and bringing the country onto the international stage. He described the initiative as "an experiment designed to show how something as simple as a meme can unite people, support national development, and put the Central African Republic on the world stage in a unique way." This launch taps into a recent trend of meme coins gaining significant traction in the cryptocurrency market, exemplified by the $Trump token which saw a brief but dramatic surge in market value.

However, the initial performance of $CAR has been turbulent. According to cryptocurrency price tracker CoinGecko, the $CAR price plummeted by 64% within 24 hours of its launch, trading at $0.1353 after having been at $0.22 earlier. While its trading volume saw a substantial rise of 105% to $780 million, the price failed to maintain critical support zones, specifically the 0.382 ($0.6412) and 0.5 ($0.5178) Fibonacci retracement levels. The descending price movement, hovering around the 0.786 level ($0.2188), suggests significant bearish pressure and an inability to reclaim higher support zones.

The $CAR initiative has also encountered immediate setbacks beyond market performance. Deepfake AI detectors flagged the Central African Republic President’s video announcement of the meme coin as suspicious, casting a shadow of doubt. Furthermore, a dedicated X account established for updates and announcements regarding $CAR was temporarily suspended, though President Touadera assured the public that efforts were underway to restore it.

CAR’s foray into meme coins is a continuation of its pioneering stance in cryptocurrency adoption, being the second country globally after El Salvador to make Bitcoin legal tender. Despite facing criticism and implementation challenges following the Bitcoin adoption, the launch of $CAR underscores the government’s unwavering commitment to leveraging digital assets for economic growth and international visibility.

Experts, such as Nigel Green, CEO of deVere Group, have cautioned investors about the inherent risks of meme coins. While they often gain popularity through viral trends, meme coins are typically characterized by extreme volatility and a lack of practical utility. Green warned that this new wave of meme coin frenzy is highly speculative and more akin to gambling than investing, where many inexperienced investors have historically been 'burned'. He emphasized that valuations can fluctuate wildly and advised investors to prioritize sound, diversified, long-term financial plans over the Fear Of Missing Out (FOMO) that often drives speculative meme coin purchases.