In an unexpected turn of events, Grok Meme Coin, a token that is wrongly believed to be tied to Elon Musk’s Grok AI venture, has experienced a significant 74% decrease in value amid allegations of fraud raised by blockchain investigator ZachXBT.
ZachXBT, through a series of posts on the social media platform X (formerly Twitter) on November 13, brought to light what seems to be a misleading façade surrounding Grok.
Grok’s Team Burns $2 Million Worth of Tokens to Regain Confidence
The evidence presented by the blockchain investigator indicates that Grok’s online presence, including its social media accounts and websites, has been repurposed from previous projects, notably an abandoned memecoin named ANDY, which faced a substantial decline from its all-time high before its creators left the project.
Not that people in this space will care but @GROKERC20 $GROK was created by a scammer.
Same exact X/Twitter account has been reused for at least one other scam.
X/Twitter ID: 1690060301465714692
— ZachXBT (@zachxbt) November 13, 2023
The disclosure triggered a rapid devaluation, with Grok’s price plunging from $0.027 to a low of $0.007 within five hours.
In an attempt to rebuild trust, ZachXBT disclosed on X that the Grok team took action by burning approximately $1.7 million worth of Grok tokens, intending to reduce the token’s supply significantly.
Following this, on November 14, the team announced the incineration of all tokens from the deployer address, amounting to around 180 million Grok tokens, equivalent to approximately $2 million.
$200 Million Market Capitalization
The Grok token made its debut on November 5, coinciding with Elon Musk’s announcement of Grok AI as a supposed competitor to OpenAI’s ChatGPT.
The memecoin immediately gained attention due to its alleged connection with Musk’s AI venture. In the subsequent week, its value surged by an astonishing 33,650%, attracting memecoin traders eager to capitalize on the surrounding hype.
On November 13, the token reached its peak value of $0.027, boasting a market capitalization close to $200 million, solidifying its status as a potential new memecoins in the current cycle.
Despite the perceived association with Musk’s Grok AI, the tech mogul himself explicitly declared that none of his companies, including Grok AI, would engage in creating cryptocurrencies.
Traders are urged to exercise caution due to the low trading volume and the inherent volatility of speculative assets in the crypto industry.
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