contributor
Posted:
- GROK fell from its all-time high of $0.027 to a low of $0.007 within five hours.
- GROK’s development team sent the token worth approximately $1.7 million to a fire address.
In a quick turn of events, the meme coin was linked to Elon Musk’s AI project, Grok [GROK]experienced a staggering 70% drop in value following allegations from blockchain researcher ZachXBT.
On November 13, ZachXBT announced on X (formerly Twitter) that GROK’s social media accounts and websites had been reused from previous projects, most notably an abandoned meme coin called ANDY.
ZachXBT backed up its claims with screenshots, revealing the apparent recycling of assets from the defunct ANDY project.
Not that the people in this room care, but @GROKERC20 $GROK was created by a scammer.
The exact same X/Twitter account has been repurposed for at least one other scam.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
This revelation set off a cascade of events, sending GROK plummeting from $0.027 to a low of $0.007 within five hours. The community eagerly observed the drastic drop and GROK’s value reached $0.012 at the time of writing, according to TradingView.
Source: GROK/USDT, TradingView.
How did the Grok team respond?
In response to the crisis, Grok’s development team took a bold step by sending the token worth approximately $1.7 million to a fire address. This was evident from an Etherscan transaction marked by ZachXBT.
This strategic token burn aimed to reduce supply and build confidence among shocked investors. The burn transaction involved as many as 90 million GROK tokens, a significant effort to save the token’s credibility.
On November 14, Grok’s official account on
all implementer wallet tokens burned 100%.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qLGROK GROK
— GROK (@GROKERC20) November 13, 2023
At its peak, GROK had a peak price of $0.027. This pushed the market cap to almost $200 million. The meme coin’s meteoric rise began on November 5, coinciding with Elon Musk’s unveiling of Grok AI, its alleged rival to OpenAI’s ChatGPT.
The following week witnessed a staggering 33,650% increase in the value of GROK. Meme coin traders, driven by the enthusiasm surrounding Musk’s AI venture, had fueled this initiative.
Elon Musk’s AI project is facing turbulence
Although Grok is still in its development stages, it has unique features that set it apart from its contemporaries. In particular, it is touted to be more efficient than ChatGPT. It has an additional ability to access real-time information from various sources.
As an extended language model (LLM), Grok is currently accessible to a select user group. There are plans for a wider public release in the near future.
Grok’s versatility also allows it to find applications in different domains and industries. From assisting with questions to providing real-time updates and offering humor, Grok focuses on educational, informational, entertainment and customer support contexts, among others.