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Elon Musk AI project inspired memecoin ‘Grok’ falls 74% on creator scam claim

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The worth of a memecoin drawing its namesake from Elon Musk’s synthetic intelligence mission “Grok” plummeted over 70% after blockchain sleuth ZachXBT alleged the token’s social media account was recycled from a rip-off token mission.

In a Nov. 13 X (previously Twitter) submit, ZachXBT shared screenshots displaying varied social media accounts and web sites tied to the Grok (GROK) token have been repurposed from previous tasks — together with an deserted memecoin mission referred to as ANDY — which has considerably declined from its all-time excessive.

Within the 5 hours following ZachXBT’s submit, memecoin fanatics watched as GROK plunged 74% from its all-time excessive of $0.027 to as little as $0.007. Its value has since retracted to $0.011, per DexTools information.

GROK’s value plunged greater than 70% in 5 hours following ZachXBT’s allegations. Supply: DexTools

In a follow-up post, ZachXBT pointed to an Etherscan transaction displaying GROK’s workforce despatched roughly $1.7 million price of the token to a burn tackle in a bid to scale back provide and restore confidence within the token.

The Grok developer burned 90 million GROK tokens after the token’s value plummeted. Supply: Etherscan

The X account for the GROK token claimed in a Nov. 14 submit that the event workforce had burned the entire tokens from the deployer tackle, some 180 million GROK price roughly $2 million at present costs.

Associated: Elon throws AI-generated insults at GPT-Four after OpenAI CEO mocks Grok

At its peak value of $0.027 on Nov. 13, GROK commanded a market capitalization of practically $200 million, making it one of many largest new memecoins within the present cycle.

The memecoin was launched on Nov. 5, the identical day Elon Musk introduced his supposed competitor to OpenAI’s ChatGPT, Grok AI. Over the course of the next week, its worth elevated 33,650% as memecoin merchants rushed to capitalize on the hype.

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