Scam tokens are growing more elaborate, almost fooling the Jupiter DEX aggregator community. A potential scam token appeared after a promotion from the profile of the President of the Central African Republic, Faustin-Archange Touadéra. The account of Faustin-Archange Touadéra, President of the Central African Republic, pointed to a new X handle for an allegedly official token representing the country. Just hours after the announcement, however, the CAR meme token account was suspended. The new token was even mentioned in a video, where Touadéra made an appearance, but raised suspicions of being AI-generated. To make matters worse, the token received an almost immediate verification from the Jupiter DEX aggregator. Jupiter is investigating the CAR meme token The founder of Jupiter, known as @weremeow, explained that the DEX aggregator wanted to verify the on-chain data of the token first. This is done to avoid copycat tokens, the first level of safety when launching new memes. Jupiter DEX also contacted the team to verify the originating wallet and make sure the mint is tied to the correct asset. The team has not yet given any proof of being part of the Central African Republic’s government or having any official capacity to create a token. ok, looks like we are in touch with the team who deployed the coin and we are able to verify by doing a number of onchain txns live. this includes: – getting them to redo the initially cancellable contract – tracking the key deployer txns from mint to lock – sending them to burn… https://t.co/s01OVymMeE — meow (🐱, 🐐) (@weremeow) February 10, 2025 With the intervention of Jupiter, the team made changes to its tokenization approach, improving some of the project’s parameters. Meme tokens are extremely resilient, and will not freeze trading while waiting for clarity. What is known about the team is they registered a domain name on Namecheap on February 6, after which the platform suspended the domain twice due to reports of fraud. The token itself launched at 1 AM Central African time, an unusual approach. Choosing Pump.fun was also a red flag as a source of initial liquidity. For now, Jupiter negotiated with the team to lock some of the tokens, though a cliff unlock is coming on May 9 for the portion allocated to public distribution. Another contract locks more of the tokens until March 9. The project will set aside some CAR tokens for charity, with another 332.5M CAR for country development. The still anonymous team of the token initially launched a different set of lockup contracts, which were considered incorrect and did not lock a sufficient amount of tokens. After the correction, the CAR token is still closely scrutinized, while traders buy it at their own risk. CAR token remains risky and volatile The asset itself was created through Pump.fun and completed its bonding curve on February 9, raising 85 SOL. The first DEX pair for the CAR token was live for less than 10 hours, but during that time, the asset rallied from $0.001 to a peak at $0.70, later erasing its gains to $0.25. The CAR token went for a fast rally, allowing early snipers and traders to lock in gains of up to $2.5M. | Source: DEXScreener The token’s rally was fast, but the top sniper realized over $497K in profits after selling all of the 53.9M CAR. What is more curious, this sniper made outsized gains, while all others coming later locked in a few hundred dollars. The timing and rapid profit turnover made some doubt that the sniper may be aware of the team’s intentions, or be an insider. Previously, that same insider traded SUNFLOWER and CRIME, among other meme tokens. Beyond snipers, active traders of CAR realized even higher profits of up to $2.5M for the top wallets. Other early buyers sit on unrealized gains of up to $6.6M , though harder to liquidate as the DEX pair contains $3M in locked SOL. Overall, early traders and snipers have liquidated up to $12M from the market, and are sitting on $50M in unrealized gains. While CAR continues to trade and is so far not considered a scam, the early traders or possibly insiders still managed to drain more liquidity from the market. Even with the new set of lockup tokens, CAR remains risky. The team reportedly still controls $17M in unlocked tokens, and can potentially extract more value from the market. Whale buying and selling continued, despite more warnings and red flags being raised for the token. Even whales and larger traders joined the market with the idea to flip the asset. The main CAR liquidity pool also diminished from around $3M down to $2.8M in less than an hour, signaling the token may become even more volatile and crash to a lower range. Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now
