CAR's Meme Coin Launch: A Deepfake Controversy

The Central African Republic (CAR) recently announced the launch of a government-backed meme coin, sparking a wave of speculation and controversy within the crypto community. The coin, dubbed $CAR, was introduced through a video message from the country's president, Faustin-Archange Touadera, which raised concerns over its authenticity due to conflicting deepfake detection results.

Adding to the skepticism, blockchain researcher Yokai Ryujin discovered irregularities in the token's domain registration. The official website, car.meme, was registered via Namecheap, a budget-friendly domain provider, just three days before the launch. This was an unusual choice for a government-backed initiative, as official domains are typically registered through more secure, state-approved providers. Shortly after, Namecheap suspended the domain, citing "abusive service" as the reason. Meanwhile, the project's X account was also suspended without explanation, further fueling concerns over the token's legitimacy.

Despite the controversies, traders initially flocked to the $CAR token, driving its valuation to $527 million within hours of launch. The surge was driven by speculation that this was the world's first government-backed meme coin, potentially paving the way for mainstream crypto adoption in the CAR. However, the token's value has since slipped to $460 million, reflecting uncertainty among investors.

The CAR has a history of embracing cryptocurrencies, being the second country after El Salvador to adopt Bitcoin as legal tender. This made the announcement of a government-backed meme coin somewhat plausible. However, the rapid emergence of deepfake allegations, irregular domain activity, and the abrupt suspension of key online platforms have cast significant doubt over the authenticity of the project. At this stage, there is no definitive proof confirming whether the $CAR token is an official initiative or a sophisticated scam. Crypto analysts are closely monitoring the situation, and investors remain on high alert as more details emerge.