Friday, December 8, 2023
HomeLaw & PoliticsGROK Memecoin Crashes 70% Over Social Media Scam Allegations

GROK Memecoin Crashes 70% Over Social Media Scam Allegations

The value of the memecoin inspired by Elon Musk’s Grok AI project experienced a drastic 70% decline after blockchain investigator ZachXBT raised concerns about the token’s social media account being recycled from a previous scam token initiative.

ZachXBT took to X (formerly Twitter) on Nov. 13, sharing screenshots that revealed the Grok (GROK) token’s social media accounts and associated websites had been repurposed from earlier projects, including an abandoned memecoin venture named ANDY. ANDY had witnessed a significant decline from its all-time high. Following ZachXBT’s revelations, GROK faced a rapid descent of 74%, plummeting from its peak of $0.027 to as low as $0.007 within five hours. Subsequently, the token’s value has partially recovered, settling at $0.011 according to DexTools data.

In response to the crisis, ZachXBT highlighted an Etherscan transaction illustrating that GROK’s development team had transferred approximately $1.7 million worth of the token to a burn address, aiming to diminish the token supply and restore investor confidence.

The official GROK token account on X addressed the issue in a Nov. 14 post, claiming that the entire token supply from the deployer address, totaling around 180 million GROK and valued at roughly $2 million at the current prices, had been burned.

During its peak on Nov. 13 at $0.027, GROK boasted a market capitalization nearing $200 million, ranking it among the most prominent new memecoins in the ongoing cycle. Launched on the same day Elon Musk announced Grok AI as a supposed competitor to OpenAI’s ChatGPT, the memecoin’s value skyrocketed by an astonishing 33,650% within the following week, fueled by enthusiastic memecoin traders seeking to capitalize on the surrounding hype.



Please enter your comment!
Please enter your name here

19 + 7 =

- Advertisment -

Most Popular