Jupiter DEX Caught Off Guard as CAR Meme Token Sparks Controversy

• A token claiming ties to the Central African Republic gained attention after an endorsement from President Touadéra, but its authenticity remains doubtful.
• Jupiter DEX initially verified the CAR meme token but later investigated it due to concerns about its legitimacy and insider trading.
• Despite lockup modifications, the project still holds $17M in unlocked tokens, posing a significant risk to traders and investors.

A suspicious token claiming to be linked to the Central African Republic emerged on Jupiter DEX, following an endorsement from President Faustin-Archange Touadéra’s social media account. The project quickly gained traction but was met with skepticism as inconsistencies surfaced.

The official X account of President Touadéra directed users to a newly created handle, promoting the token as the country’s official digital asset. However, shortly after the announcement, the account was suspended, raising doubts about the token’s legitimacy. A video featuring the president was also circulated, but its authenticity was questioned due to possible AI manipulation.

Jupiter DEX Investigates Token Amid Verification Backlash

Jupiter DEX initially verified the token, considering it a legitimate asset. The platform, however, later launched an investigation after inconsistencies were identified. The team behind Jupiter sought to confirm the originating wallet and verify its connection to the Central African Republic’s government, but no official confirmation was provided.

Further scrutiny revealed that the project’s website domain was registered on February 6 through Namecheap, which later suspended it twice following fraud reports. The token launched at 1 AM Central African Time, an unusual time frame. It also used Pump.fun for initial liquidity, a platform often associated with speculative assets.

Jupiter DEX Negotiates Lockup Terms While Token Volatility Continues

Jupiter DEX worked with the project team to improve token security, enforcing lockup contracts to restrict large sell-offs. However, concerns remain as the token will undergo a cliff unlock on May 9, with an additional contract unlocking more assets by March 9. The project claims a portion of the supply is allocated for charitable and developmental efforts, but skepticism lingers.

The token quickly gained momentum, raising 85 SOL in its initial bonding phase. Within hours, it surged from $0.001 to a peak of $0.70 before dropping to $0.25. A particular wallet made nearly $497K in profits by liquidating 53.9M CAR tokens, triggering speculation of insider trading. The same trader had previously been involved in trading suspicious tokens, including SUNFLOWER and CRIME.

Liquidity Drains as Traders Extract Millions in Profits

Early traders locked in profits exceeding $2.5M, while unrealized gains reached $6.6M. Liquidity in the CAR trading pool dropped from $3M to $2.8M within an hour, indicating high volatility. Despite ongoing warnings, whale traders continue to buy and sell the token, contributing to erratic price swings.

Although the project has revised its lockup terms, the team still controls $17M in unlocked tokens, leaving room for further liquidity extraction. The ongoing trading activity suggests that volatility will persist, making the token a high-risk asset for investors. The CAR token remains under scrutiny as its legitimacy continues to be questioned.