The group introduced the incineration of all tokens from the deployer handle, amounting to round 180 million Grok tokens, equal to roughly $2 million.
In an surprising flip of occasions, Grok Meme Coin, a token that’s wrongly believed to be tied to Elon Musk’s Grok AI venture, has skilled a big 74% lower in worth amid allegations of fraud raised by blockchain investigator ZachXBT.
ZachXBT, by a sequence of posts on the social media platform X (previously Twitter) on November 13, dropped at mild what appears to be a deceptive façade surrounding Grok.
Grok’s Workforce Burns $2 Million Value of Tokens to Regain Confidence
The proof offered by the blockchain investigator signifies that Grok’s on-line presence, together with its social media accounts and web sites, has been repurposed from earlier tasks, notably an deserted memecoin named ANDY, which confronted a considerable decline from its all-time excessive earlier than its creators left the undertaking.
Identical actual X/Twitter account has been reused for not less than one different rip-off.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
The disclosure triggered a speedy devaluation, with Grok’s value plunging from $0.027 to a low of $0.007 inside 5 hours.
In an try and rebuild belief, ZachXBT disclosed on X that the Grok group took motion by burning roughly $1.7 million value of Grok tokens, intending to cut back the token’s provide considerably.
Following this, on November 14, the group introduced the incineration of all tokens from the deployer handle, amounting to round 180 million Grok tokens, equal to roughly $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 instantly gained consideration on account of its alleged reference to Musk’s AI enterprise. Within the subsequent week, its worth surged by an astonishing 33,650%, attracting memecoin merchants desirous to capitalize on the encircling hype.
On November 13, the token reached its peak worth of $0.027, boasting a market capitalization near $200 million, solidifying its standing as a possible new memecoins within the present cycle.
Regardless of the perceived affiliation with Musk’s Grok AI, the tech mogul himself explicitly declared that none of his firms, together with Grok AI, would interact in creating cryptocurrencies.
Merchants are urged to train warning as a result of low buying and selling quantity and the inherent volatility of speculative belongings within the crypto trade.