The cryptocurrency Grok, seemingly named after Elon Musk’s AI venture, experienced a dramatic 70% decline in value following allegations from blockchain investigator ZachXBT.
On November 13, ZachXBT, through a post on X (formerly Twitter), exposed what appeared to be a deceptive online facade for Grok, highlighting the repurposing of assets from failed projects, including the defunct memecoin named ANDY.
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 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
Grok’s Rapid Decline: 74.1% Crash
Following revelations by blockchain investigator ZachXBT, Grok’s value plunged from $0.027 to a mere $0.007, marking a staggering 74.1% decline in just five hours. Although a slight recovery lifted the price to $0.011, DexTools data revealed the severity of the cryptocurrency’s fall.
In a bid to salvage Grok’s reputation, ZachXBT exposed the team’s desperate move—transferring about $1.7 million worth of Grok to a burn address to significantly reduce supply. Transaction data from Etherscan confirmed the divestment of 90 million Grok tokens.
In a last-ditch effort to regain trust, the Grok team, via their X account on Nov. 14, announced the incineration of all tokens allocated to the deployer, totaling around 180 million Grok tokens. At the current valuation, this burn amounted to approximately $2 million.
https://twitter.com/GROKERC20/status/1724113841930539516?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1724113841930539516%7Ctwgr%5Ef8ca67845d953b8a97014bc59019338f1a09bd9d%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.benzinga.com%2Fmarkets%2Fcryptocurrency%2F23%2F11%2F35768291%2Fgrok-meme-coin-named-after-musks-ai-bot-collapses-74-in-value-after-fraud-allegations-by-b
On Nov. 13, at its peak, Grok boasted a market capitalization close to $200 million, securing its position among the top new memecoins for this investment cycle.
Musk’s Grok: AI Chatbot Caution for Traders
Inspired by The Hitchhiker’s Guide to the Galaxy, Musk’s Grok is an artificial intelligence chatbot known for its rebellious nature. Musk, despite expressing concerns about AI dangers, announced Grok’s availability for premium subscribers on his X platform post thorough testing. Notably, Grok has access to user posts on X and is known for delivering sarcastic responses.
Traders involved in GROKAI should exercise caution, given the low trading volume indicating potential risks.
It’s crucial to highlight Musk’s firm stance that none of his companies, including xAI, will create cryptocurrency tokens.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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