TL;DR:
- Grok Coin, inspired by Elon Musk’s Grok AI, experiences a sharp 74% drop in value.
- Allegations of recycled social media accounts from previous scam projects trigger the decline.
- Blockchain investigator ZachXBT presents evidence of repurposed accounts and websites.
- GROK’s value drops from $0.027 to $0.007 within five hours, later partially recovering to $0.011.
- The Grok team takes action by burning approximately $1.7 million worth of GROK tokens.
- The official GROK token account announces the burning of 180 million tokens, valued at $2 million.
- GROK had a peak market capitalization of nearly $200 million, rising by 33,650% in just one week.
- The Grok coin saga highlights the volatility of the cryptocurrency market and the importance of trust and credibility.
Main AI News:
In the world of cryptocurrencies, a promising memecoin named ‘Grok,’ which drew inspiration from Elon Musk’s artificial intelligence project, Grok AI, recently faced a staggering 74% drop in value. The dramatic decline was triggered by allegations surrounding the coin’s social media account, which was accused of being recycled from a previous scam token project.
Blockchain investigator ZachXBT ignited the controversy with a tweet on November 13, where he presented compelling evidence. Screenshots revealed that various social media accounts and websites associated with the Grok (GROK) token had been repurposed from earlier projects, including an abandoned memecoin venture called ‘ANDY,’ which had witnessed a significant decline from its all-time high.
In the wake of ZachXBT’s exposé, the memecoin community watched in disbelief as GROK’s value plummeted from its all-time high of $0.027 to a dismal low of $0.007 within just five hours. Subsequently, the token’s price partially recovered to $0.011, according to DexTools data.
Attempting to restore confidence in the beleaguered token, the Grok team took decisive action. ZachXBT revealed an Etherscan transaction that demonstrated the team’s commitment to reducing the token’s supply. They sent approximately $1.7 million worth of GROK tokens to a burn address, signaling their dedication to addressing the situation.
On November 14, the official GROK token account on X (formerly Twitter) made a significant announcement. They claimed that the development team had burned all of the tokens associated with the deployer address, which amounted to approximately 180 million GROK tokens, valued at around $2 million at current market prices.
At its peak price of $0.027 on November 13, GROK boasted a market capitalization of nearly $200 million, establishing itself as one of the prominent new memecoins in the current cryptocurrency cycle. The memecoin made its debut on November 5, coinciding with Elon Musk’s announcement of Grok AI, purportedly a competitor to OpenAI’s ChatGPT. In the following week, GROK’s value skyrocketed by an astounding 33,650%, as memecoin enthusiasts rushed to ride the wave of hype.
The Grok coin saga serves as a cautionary tale in the volatile world of cryptocurrencies, where rapid gains can be quickly undone by the specter of scams and controversies. Investors and enthusiasts alike will be closely watching how the Grok team navigates these turbulent waters to regain trust and credibility within the crypto community.
Conclusion:
The dramatic price plunge and scandal surrounding Grok coin demonstrate the volatility and risks associated with the cryptocurrency market. Rapid gains can quickly turn into substantial losses when controversies and scams arise. The Grok team’s efforts to address the situation, including burning tokens, will be closely monitored by investors and enthusiasts, as they seek to rebuild trust within the crypto community. This incident serves as a cautionary tale for the broader market, emphasizing the importance of transparency and credibility in cryptocurrency projects.
