Elon Musk-linked Memecoin GROK Nosedives by 70% after Fraud Allegations
Summary:
After blockchain investigator ZachXBT accused memecoin GROK's social media account of being a rebrand of a defrauded token project, its value plunged by over 70% in a matter of hours. The GROK team attempted to re-establish trust by burning tokens equivalent to about $1.7 million. Despite this, at its apex, GROK had nearly $200 million market capitalization, making it one of the biggest emerging memecoins in the current cycle.
The digital currency linked to Elon Musk's artificial intelligence project "Grok" witnessed a significant drop of over 70% in value after ZachXBT, the well-known blockchain investigator, asserted that the social media account of this memecoin is a rebrand of a defrauded token project. Through a post on the X platform (previously Twitter) on November 13, ZachXBT laid out evidence that the original social media handles and web platforms related to Grok (GROK) were exploited remnants of past schemes, including a deserted memecoin dubbed ANDY, which has drastically dipped from its once high value.
As ZachXBT's accusation emerged, memecoin enthusiasts saw GROK's price crash to a staggering 74% from its apex of $0.027, hitting the rock bottom of $0.007 within five hours. Its value has somewhat recovered to $0.011, as DexTools data reveals. To regain trust from the token holders, the GROK team reportedly transferred tokens worth around $1.7 million to a burn address, marking an attempt of supply cut.
In a communication dated November 14, the GROK token's X platform account announced that the creators have incinerated all tokens existing in the deployer's account, which equates to approximately 180 million GROK or an estimated $2 million.
GROK, reaching a top value of $0.027 on November 13, boasted a market capitalization of nearly $200 million, placing it among the biggest new memecoins of the current cycle. It was introduced to the market on November 5, coinciding with Elon Musk's declaration of his AI counterpart to OpenAI’s ChatGPT, Grok AI. Its valuation sky-rocketed by a whopping 33,650% within the week that followed as memecoin speculators hurried to seize the hype.
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Published At
11/14/2023 1:44:35 AM
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