Car Meme Coin Crashes After Surge—What’s Next for Traders?

Central African Republic Meme Coin Soars, Then Dives- What’s Next

$CAR Memecoin Launch: Central African Republic’s Bold Crypto Experiment

In an unexpected yet thrilling development, the Central African Republic (CAR) President, Faustin-Archange Touadéra, has launched a new Solana-based memecoin, aptly named $CAR. Announced on February 9 via the President's official X (formerly Twitter) account, the digital asset was described as an "experiment" aimed at positioning the country on the global financial stage.

Following in the footsteps of former U.S. President Donald Trump, who introduced his own memecoin, $TRUMP, the CAR token experienced a meteoric rise. Within mere hours of its launch on Pump.fun, a Solana-based meme coin launchpad, its market capitalization skyrocketed to an astonishing $900 million. This massive surge caught the attention of major cryptocurrency exchanges, leading to immediate listings.

Could $CAR Transform CAR’s Economy—or Is It a Gimmick?

The Central African Republic, with a GDP of just $2.6 billion, now finds itself at the center of the crypto storm. A significant 35% of the total $CAR supply has been locked for "Country Development", signaling a potential shift in economic strategy. While traditional financial aid from organizations like the U.S. and U.N. has struggled to drive development, the introduction of $CAR suggests that crypto might provide an alternative economic boost.

However, despite the initial hype, the actual market cap of $CAR has settled at $310 million, a stark contrast to its peak. This raises questions about the long-term viability and the sustainability of meme coins tied to political figures.

Traders Cash In: A Wild Crypto Ride

In true crypto fashion, early adopters of $CAR have seen life-changing gains. According to the on-chain data platform Lookonchain, one trader spent just 25 SOL (approximately $5,000) to purchase 46.57 million $CAR tokens within seconds of launch. Within three hours, that investment ballooned to $12 million, an eye-watering 2,450x return.

Another seasoned trader, known as "4v7nG," swapped $1.52 million worth of $TRUMP tokens for 2.495 million $CAR tokens, demonstrating a keen eye for emerging trends. This trader has previously realized massive profits, including:

$5.72M profit from $TRUMP (+206%) while still holding $3.28M worth.

$2.96M from $PNUT (+477%).

$1.23M from $GOAT (+132%).

This highlights the high-risk, high-reward nature of meme coin trading, where fortunes can be made—or lost—in mere hours.

Signs of a Pump-and-Dump? What Traders Need to Know

Despite the initial surge, $CAR has exhibited classic pump-and-dump behavior. The token reached a peak price of $0.90 before undergoing a sharp correction, now stabilizing around $0.30. This volatility is not uncommon in meme-coins but raises concerns about sustainability and potential manipulation.

Adding to the skepticism, recent crypto scams have seen hackers hijacking high-profile X accounts—including that of former Malaysian Prime Minister Mahathir Mohamad—to promote fraudulent tokens. Given the rapid rise and subsequent decline of $CAR, some are questioning whether this project is a legitimate government-backed initiative or another orchestrated deception.

What’s Next for $CAR?

Looking at technical indicators, the $CAR/SOL chart follows a parabolic rise followed by a sharp correction—a pattern frequently seen in speculative assets. If $0.30 holds as a support level, we might see a bullish breakout, potentially pushing the price back to the $0.50 - $0.60 range. However, if sell pressure persists and $0.30 is breached, the next support level could be around $0.20 or lower.

Final Thoughts: A New Era or a Cautionary Tale?

The launch of $CAR marks a new chapter in political crypto adoption, showcasing how digital assets can intertwine with governance and economic strategy. While some see it as a revolutionary financial experiment, others caution against the risks of political meme coin, given the market’s history of rug pulls and manipulation.