Elon Musk’s new project called ‘Grok’, which is essentially an AI chatbot service with a more humorous and uncensored approach compared to other chatbots, has started its rollout. As excitement about Grok bubbled up on social media, a memecoin project of the same name made a splash in the digital asset market. With Musk-inspired branding and arriving at a time when the crypto market is at its highest valuation this year, the memecoin was quickly accepted by the crypto community, if only because its fame disappeared almost immediately after its creation.
At the time of writing, Grok was trading at $0.011880 (approximately Rs. 0.99) according to CoinMarketCap.
In the past few hours, the value of Grok tokens has fallen sharply by 70 percent. It happened after a blockchain analyst, who goes by the username @zachxbt on X, claimed that the social media accounts and websites related to Grok had been repurposed from old crypto projects.
Later, @zachxbt also pointed out that the developer team behind Grok has transferred around $1.7 million (roughly Rs. 14 crore) worth of tokens to a brand address that would increase the rarity quotient of the token and make it more attractive to investors.
As soon as this news started spreading, floodgates of rumors and suspicions about Grok being a scam opened on social media. The altcoin’s valuation, which was reported to have touched the $160 million mark (approximately Rs. 1,331 crore) earlier this week, is currently valued at just over $92 million (approximately Rs. 772 crore).
I was the first person on X to raise awareness $GROK X account recycled five days ago. Was a yellow flag for me and one of the main reasons I didn’t buy. This doesn’t mean it’s a scam, it just means that dev has already launched many projects. Let’s see how they recover today. @GROKERC20 pic.twitter.com/kkvbh0iewW
— JAKE (@JakeGagain) November 13, 2023
Is $GROK the next scam on DEX?
After Elon launched #Gork AI, scammers took this opportunity and launched a token on the same coin ticker $GORK and drove a price increase of 200-500x over the next 10 days.
:red_circle:But why is it suspicious?
:arrow_right: Check the market cap of 86M and available… pic.twitter.com/sOyiIf0JZN
— Zia ul Haque (@ImZiaulHaque) November 14, 2023
Some general panic selling in the meme pin market caused by Grok scam, @ERC20Rock is doing the right thing, don’t fade Anon, is just a $ ROCK :rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket: pic.twitter.com/CthAwvkfLb
— HumbleMan:man_in_lotus_position: (@treso888) November 13, 2023
Members of the crypto community are warning each other about making careful investment decisions around newly emerging and hyped cryptocurrencies like Grok.
Musk started rolling out GrokAI on November 5, and the crypto project made its social media debut on the same day. Memecoin traders quickly jumped on board the hyped altcoin and within a week, Grok’s value registered a continued spike. The all-time high was recorded at $0.027 (approximately Rs. 2.25) on November 13.
Musk has not discussed anything regarding the Grok cryptocurrency so far.
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