Grok Meme Coin Plummets 74% Following Fraud Allegations

Desk of Contents

A meme coin named after Elon Musk’s synthetic intelligence (AI) bot has witnessed a spectacular collapse following accusations from famous blockchain investigator, ZachXBT. 

The not too long ago launched Grok memecoin hit a market cap of $160 million simply eight days after its debut. 

ZachXBT’s Accusation

The eight-day outdated meme coin has been experiencing appreciable volatility. The token registered a rise of 13,000% over the previous week, serving to it attain its $160 million market capitalization. Nevertheless, regardless of having round 11,500 holders and vital buying and selling volumes, liquidity for GROK/USD stays restricted, which will increase the danger of a worth collapse if giant volumes of the token are offered. 

Now, the worth of the meme coin has registered a spectacular collapse following allegations by cryptocurrency sleuth ZachXBT. The cryptocurrency sleuth alleged that the token’s social media account was recycled from a rip-off token mission. In a submit on the thirteenth of November, ZachXBT shared a number of screenshots from numerous social media accounts and web sites related to the Grok (GROK) token. These web sites and accounts had been repurposed from a number of outdated tasks, together with an deserted meme coin mission referred to as ANDY. ANDY has registered a big decline from its all-time excessive. 

“Not that folks on this house will care, however @GROKERC20 was created by a scammer. The identical precise X/Twitter account has been reused for a minimum of one different rip-off. X/Twitter ID: 1690060301465714692.”

Following the submit by ZachXBT, the worth of the GROK token registered a spectacular drop, dropping by 74% from its all-time excessive of $0.027 to a low of $0.007 in a matter of hours. Nevertheless, the worth has considerably recovered, rising to $0.011. 

GROK Crew Tries To Restore Confidence 

In a follow-up submit, the crypto investigator offered proof of the group behind Grok making a last-ditch effort to revive confidence within the token and salvage its popularity. ZachXBT pointed to an Etherscan transaction that confirmed the Grok group sending round $1.7 million price of the token to a burn deal with to scale back provide and restore confidence within the flailing token. This transfer to divest round 90 million GROK tokens and drastically cut back the circulating provide was confirmed by transaction information on Etherscan. 

The group then introduced on X that every one GROK tokens allotted to the deployer deal with had been incinerated. This amounted to round 180 million GROK tokens, price round $2 million at present costs. 

The GROK Meme Coin 

At its peak worth of $0.027, The GROK meme coin commanded a market capitalization of practically $200 million. This made the token one of many largest new meme cash out there throughout the ongoing cycle. The GROK meme coin was launched on the fifth of November, the identical day Elon Musk introduced a possible competitor to OpenAI’s ChatGPT, Grok AI. The following few weeks noticed the GROK token’s worth surge as meme coin fanatics rushed to capitalize on the hype across the token. 

Dodgy meme coin tasks have not too long ago elevated, given the benefit of token creation and buying and selling on decentralized exchanges. Some tasks embrace the BALD token (named such as a result of Coinbase CEO Brian Armstrong is bald), which launched on Base, Coinbase’s Layer-2. The creators of the mission finally made off with tens of millions. One other token, Pepecoin, generated appreciable curiosity, resulting in its market capitalization crossing $1.5 billion. Nevertheless, the group behind the mission transferred tens of millions of PEPE tokens into exchanges with none prior warning. There are additionally a number of dog-themed tokens and tasks that pay homage to the unique meme coin, Dogecoin.

Disclaimer: This text is supplied for informational functions solely. It isn’t supplied or supposed for use as authorized, tax, funding, monetary, or different recommendation.