The Central African Republic (CAR), a landlocked country in Central Africa, rolled out the launch and sales of its national cryptocurrency called “Sango Coin” on Monday, July 25, as planned.
However, the sales of the national digital currency tokens started with a low tone, with just over 5% of the target bought in the hours after its launch. The slow start has so far raised questions about the project’s transparency and a broader market downturn in the industry.
As reported by Blockchain.News last week, the launch and sales of “Sango Coins” worth $21 million were expected as of Monday. The CAR government planned to put 210 million Sango Coins on offer (sales), priced at $0.10 each, with a minimum investment of $500 to be paid in cryptocurrencies, including Bitcoin and Ethereum.
Out of the initial $21 million on offer, about $1.09 million had been sold by 1115 GMT on Tuesday, after the digital token went on sale at 1700 GMT on Monday, according to Reuters media.
Investors, who were enthusiastic about the prospects, bought the Sango Coin, with a minimum investment of $100 paid in cryptocurrencies, including Bitcoin and USDT. This was a drop from customers’ planned minimum investment of $500.
A local investor named Michel Muna, a 35-year-old Cameroonian who imports food and drink, bought $524 worth of Sango Coin on Monday.
Some market experts have tried to explain the events behind the sales of the CAR’s crypto coins on the first day.
Joseph Edwards, head of financial strategy at Solrise, a crypto investment firm, said: “A crypto project not selling out its initial mint is a poor sign. It’s hard to get a precise read on things because of the whole coin and project’s deliberately obscure structure.”
Another crypto industry figure, who requested her identity to remain anonymous, said Sango Coin did not have what most crypto enthusiasts view as one of the assets’ main benefits – a lack of state involvement. “They’re building something that is literally controlled by the government,” she stated.
Revitalising National Economy
In April, the Central African Republic (CAR), one of the world’s poorest countries, made headlines when it became the first African state to make Bitcoin legal tender.
The announcement puzzled many crypto experts and prompted the International Monetary Fund to warn that the African country’s implementation of Bitcoin would pose economic and legal issues.
Opposition parties criticised the CAR for deciding without consulting the regional central bank that manages the shared currency of six countries, including the Central African Republic.
However, the CAR government defended the plan, stating that the move towards cryptocurrency is part of the nation’s effort to revitalise its economy and develop its financial inclusion with a ‘next-generation currency.’
Ranked among the poorest nations in the world, the CAR became the second to adopt cryptocurrency after El Salvador.
Image source: Shutterstock