Central African Republic’s Sango coin, which started selling on Monday, June 25, has recorded only $1.09 million in sales after 24 hours of the offering.
The government of CAR launched its digital currency with a projection to raise about $1 billion from its sales within the next year. Of the initial $21 million worth of tokens offered for sale, only about $1.09 million were sold as of Tuesday, July 26. The slow start of sales for the token could be an effect of the declining crypto market conditions and criticisms trailing the Sango project.
Mixed Reactions trail Token Launch
Following the low trading volume experienced on the launch date, some market participants have expressed dissatisfaction over the turn of events. They cited a lack of transparency and non-consultation with appropriate stakeholders as possible reasons for low acceptance.
Head of Financial Strategy at Solrise, Joseph Edwards, commented:
“A crypto project not selling out its initial mint is a poor sign,”
On the other hand, some investors are taking a bet on the project because of the promise to tokenize its mineral resources. A local crypto investor, Muna, said:
“Sango is the beginning of the Rise of the African Continent,”
CAR and the ambitious “Sango Project”
CAR became the first African country to legalize Bitcoin as a legal tender on April 27, 2022. Much like its predecessor, El Salvador, the International Monetary Fund (IMF) criticized the action and advised the country to consider other options. In opposing the move, the Bank of Central African States described it as “incompatible with the agreements and conventions governing the Central African Monetary Union.”
Not deterred by the criticisms, CAR followed up its Bitcoin adoption bill with the launch of Sango, a Bitcoin sidechain built to power a digital monetary system that will drive crypto adoption in the country. According to the plan, the country’s natural resources will be tokenized on the Sango blockchain.
With the just-launched Sango Coin, the government seeks to use proceeds from its sale to build a local crypto hub that will become a haven for crypto-enthusiasts in the region. Its metaverse will house a crypto island that will have an equivalent space in the physical world.
Sango coin holders are promised more upsides for investing in the project. They can earn an e-Residency permit and become citizens of CAR by locking up the required tokens for a specified period. Transactions related to government land sales, taxes, and access to the country’s natural resources can all be settled using the Sango coin.