Home | Crypto News | Grok Memecoin Plunges 74% Amid Scam Allegations Linked to Elon Musk’s AI Project

Grok Memecoin Plunges 74% Amid Scam Allegations Linked to Elon Musk’s AI Project

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The memecoin named Grok, inspired by Elon Musk’s artificial intelligence project, witnessed a dramatic plunge in value following allegations of its connection to a previous scam token. Renowned blockchain detective ZachXBT brought the issue to light through a series of revealing social media posts.

On November 13, ZachXBT tweeted evidence suggesting that the social media accounts and websites associated with Grok (GROK) were formerly used for a different project, specifically a failed memecoin called ANDY. This revelation had a swift and drastic impact on the market, leading to a 74% drop in GROK’s value within five hours. Initially priced at its all-time high of $0.027, the token’s value tumbled to a low of $0.007 and later saw a slight recovery to $0.011, according to DexTools data.

In an attempt to salvage the situation, the GROK development team reportedly sent approximately $1.7 million worth of the token to a burn address, aiming to decrease the circulating supply and regain investor trust. The official GROK Twitter account announced on November 14 that the team had burned all tokens from the deployer address, totaling around 180 million GROK, worth about $2 million at current rates.

At its highest valuation on November 13, GROK’s market cap nearly reached $200 million, positioning it as one of the most prominent new memecoins in the market. The token’s launch coincided with Elon Musk’s announcement of his AI project, Grok AI, on November 5. In the week following its introduction, GROK’s value skyrocketed by 33,650%, driven by traders eager to capitalize on the surrounding hype. However, the recent controversy and allegations have cast a shadow over the memecoin’s future, reflecting the volatile and often unpredictable nature of such digital assets.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a leading crypto blog writer, he relishes sharing his knowledge on the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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