Grok Memecoin Plummets Amid Scam Allegations
Grok memecoin, influenced by Elon Musk’s AI project with the same name. crashed 74% following scam claims.
The Grok memecoin, inspired by Elon Musk’s Grok AI project, witnessed a dramatic fall in value. This plunge, amounting to a staggering 74%, followed claims that its creators were involved in a scam. Investigations revealed that the social media presence of Grok was not original but rather a rebranded version of an earlier, dubious token project.
Blockchain expert ZachXBT played a pivotal role in unmasking this deceit. His investigative work, shared on the social media platform X (formerly known as Twitter), highlighted the links between Grok (GROK) and a previously failed memecoin named ANDY. His revelations included compelling evidence in the form of screenshots, tracing back Grok’s digital footprint to its dubious origins. This discovery had immediate repercussions on Grok’s market value.
Grok’s value plummeted rapidly within just five hours of ZachXBT’s exposé, dropping from its peak of $0.027 to a mere $0.007. Despite a slight recovery to $0.011, as reported by DexTools, the damage to investor confidence was significant. In a response that seemed to aim at damage control, the Grok team reportedly moved a substantial sum of the token, approximately $1.7 million, to a burn address. This action, intended to reduce the circulating supply, was an effort to regain trust in the token.
Market Impact and Future Outlook
As of Nov. 14, the Grok token team asserted that they had incinerated all tokens from the deployer’s address, totaling around 180 million GROK. This amount, valued at about $2 million, was a desperate attempt to stabilize the token’s plummeting value. Before its downfall, Grok had briefly achieved a market cap close to $200 million, positioning it among the most prominent new memecoins.
Launched concurrently with Musk’s announcement of the Grok AI on Nov. 5, the memecoin initially saw an astronomical rise of 33,650% in value. This surge was driven by traders eager to capitalize on the buzz surrounding Musk’s project. However, the subsequent revelations and the market’s reaction underscore the volatile and often unpredictable nature of memecoins, highlighting the risks associated with investment decisions based more on hype than on solid fundamentals.