Crypto News – Following claims that its social media account was recycled from a previous scam token, the memecoin that took its name from the Grok AI project crashed.
Grok Memecoin Scam Allegation: Inspired by Elon Musk’s AI Project, Memecoin’s Price Drops 74% After Allegations
After blockchain expert ZachXBT said that the token’s social media account was recycled from a fraud token project, the price of a memecoin that takes its name from Elon Musk’s artificial intelligence project Grok fell by more than 70%. ZachXBT published screenshots in an X post on November 13th, demonstrating how several websites and social media profiles associated with the Grok (GROK) currency were reused from previous projects. One such project was the abandoned memecoin ANDY, which has drastically decreased in value since its peak.
1.7 Million Dollars Worth of Tokens May Have Been Burned to Restore Confidence
Memecoin aficionados saw GROK fall 74% from its peak of $0.027 to as low as $0.007 in the five hours that followed ZachXBT’s post. CoinMarketCap data indicates that the price has dropped to $0.08325 since then. In an attempt to decrease supply and boost trust in the token, GROK’s team sent almost $1.7 million worth of it to a burn address, according to an Etherscan transaction that ZachXBT cited in a follow-up post.
The development team allegedly burned all 180 million GROK, or over $2 million at current rates, from the deployer address, according to a post published by the X account for the GROK token on November 14.
About Grok Memecoin
One of the biggest new meme coins of the current cycle, GROK had a market capitalization of around $200 million at its peak price of $0.027 on November 13. On November 5, the memecoin was introduced, coinciding with Elon Musk’s announcement of Grok AI, his purported rival to OpenAI’s ChatGPT. Its value surged by 33,650% in the ensuing week as memecoin dealers hurried to take advantage of the excitement.