The Central African Republic (CAR) has finally launched its long-awaited Sango token. The coin was unveiled to the public on Monday, July 25th, and has recorded a paltry $1.09 million in sales in 24 hours.
At the project’s initial conception, the government set a revenue projection of roughly $1 billion from sales. However, the first public offering did not contribute much to meeting the government’s revenue target.
Meanwhile, the combined sales of the Sango coin have reached $21 million, of which $1.09 million were recorded on July 26th.
The declining activity in the broader crypto market may have been responsible for the slow start to the life of the Sango project.
Reactions from Sango Coin’s Performance
It is on record that the Sango Coin has generated excitement from supporters before its launch. Following the low performance of the token on the most important day, participants were not satisfied.
Many expect the token to surpass their expectations, considering the project’s significance.
There are indications that the creators of the Sango Coin did not undertake wide consultation with the industry stakeholders.
According to Joseph Edwards of Solaris, a low sell-out of a crypto token at its first mint is not an encouraging sign.
Moreover, many were dissatisfied with the outcome, mainly because of the promise of tokenization.
At the public announcement of Sango, the CAR president pledged to tokenize the country’s mineral resources. And most investors see this as the cherry on top of the project due to its attractiveness.
Overall, the poor turn of the event may not count if subsequent offerings churn in huge returns.
CAR’s Ambitious Move
On April 27th, 2022, CAR announced Itself to the world of digital currencies. It became the first African country to legalize the use of Bitcoin for transactions.
Like its South American counterpart, El Salvador, CAR drew the ire of the International Monetary Fund (IMF) over its decision to adopt Bitcoin as legal tender.
The IMF has advised the country to explore other options for seeking monetary diversification other than cryptocurrency. However, the IMF is not alone in opposing CAR’s move. The Bank of Central African States has tagged the move incompatible with the agreement binding members.
In addition, countries in the Central African region are members of the Central African Monetary Union, the body overseeing economic growth.
CAR appears undeterred by the criticism and followed Bitcoin adoption with the creation of the Sango project.
Sango is a Bitcoin-based sidechain developed to drive a digital monetary system to boost crypto adoption. The plan is to tokenize the country’s natural resources on the Sango protocol.
The government intends to utilize the proceeds from the sale of Sango Coin to develop a local crypto hub.
Moreover, the Sango Project has a metaverse housing a crypto-island with a replica in the physical world.
The government already promises investors mouth-watering incentives for their investments.
All transactions that have to do with the government can also be settled using the newly launched Sango coin.