Using Sango Coin, CAR plans to tokenize its mineral and land resources.
The public sale of the Central African Republic’s national cryptocurrency, the Sango coin, got off to a slow start on Monday evening. At the time of writing, sold tokens equalled 5.47% of the 21 million Sango coins put for sale.
While the government initially pegged the minimum participation at $500, it has since reduced the peg to $100. With the genesis cycle price at $0.10, the country hopes to attract more investors to its currencies.
Crypto experts suggest this may signal that the coin will not perform well. Joseph Edwards, Head of the financial strategy at Solrise, said:
“A crypto project not selling out its initial mint is a poor sign.”
Edwards attributes this to the mystery surrounding the coin and its infrastructure.
CAR has been scant on details about several aspects of the cryptocurrency project, raising concerns among potential investors. According to Reuters, it remains unclear which exchanges will list the coin. It is also unclear which company is supporting its rollout.
Another potential investor who opted for anonymity stated that the country was building a coin with a centralized infrastructure.
Sango Coin Can Boost CAR Economy
Meanwhile, CAR President Faustin-Archange Touadéra expressed optimism about the potential of digital currency to improve the country’s economy. The African nation has seen its fair share of civil wars. It was the second nation after El-Salvador to announce bitcoin as a legal tender in April.
Since then, the market has seen a significant downturn. El Salvador’s Bitcoin has lost half of its investment value. However, this has done little to deter the CAR government from moving ahead. “For us, a formal economy is no longer an option,” noted President Faustin-Archange Touadera.
Using Sango Coin, CAR plans to tokenize its mineral and land resources. In the interim, foreign investors will be able to obtain “e-residency” upon locking away Sango coin worth $6,000 for three years, according to the Sango website.
The sale of the Sango coin will last for one year across four cycles, with the token price increasing after every round till it gets to $0.45. Sango coin is built on the Sango blockchain, a bitcoin sidechain, guaranteeing interoperability between the two chains.