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Sales of the Sango Coin in the Central African Republic went live, but only generated $1.09 million in 24 hours
Sango Coin received a $1.09 million inflow within 24 hours of its initial offering, despite project criticism and declining market conditions.
The Central African Republic's Sango coin, which went on sale on Monday, June 25, has only raised $1.09 million in the first 24 hours.
The government of CAR launched its digital currency with the goal of raising $1 billion in sales within the next year. Only about $1.09 million of the initial $21 million in tokens offered for sale had been sold as of Tuesday, July 26. The slow start of token sales could be attributed to the declining crypto market conditions and criticisms surrounding the Sango project.
Token Launch Receives Mixed Reactions
Following the low trading volume on the launch date, some market participants expressed dissatisfaction with the outcome. They suggested that low acceptance could be due to a lack of transparency and non-consultation with appropriate stakeholders.
Joseph Edwards, Solrise's Head of Financial Strategy, stated:
“A crypto project not selling out its initial mint is a poor sign,”
Some investors, on the other hand, are betting on the project because of the promise to tokenize its mineral resources. Muna, a local cryptocurrency investor, stated:
“Sango is the beginning of the Rise of the African Continent,”
CAR and the ambitious "Sango Project" On April 27, 2022, CAR became the first African country to legalize Bitcoin as legal tender. The International Monetary Fund (IMF), like its predecessor, El Salvador, condemned the action and advised the country to consider other options. The Bank of Central African States opposed the move, calling it "incompatible with the agreements and conventions governing the Central African Monetary Union."
Despite the criticism, CAR followed up its Bitcoin adoption bill with the launch of Sango, a Bitcoin sidechain designed to power a digital monetary system that will drive crypto adoption in the country. The country's natural resources will be tokenized on the Sango blockchain, according to the plan.
The government intends to use the proceeds from the sale of the recently launched Sango Coin to build a local crypto hub that will serve as a haven for crypto enthusiasts in the region. Its metaverse will house a crypto island, which will have an equivalent physical space.
Sango coin holders are promised additional benefits for their investment in the project. They can obtain an e-Residency permit and become citizens of CAR by storing the necessary tokens for a set period of time. The Sango coin can be used to settle transactions involving government land sales, taxes, and access to the country's natural resources.
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