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

cointelegraph.com:

The price of a memecoin drawing its namesake from Elon Musk’s artificial intelligence project “Grok” plummeted over 70% after blockchain sleuth ZachXBT alleged the token’s social media account was recycled from a scam token project.

In a Nov. 13 X (formerly Twitter) post, ZachXBT shared screenshots showing various social media accounts and websites tied to the Grok (GROK) token were repurposed from old projects — including an abandoned memecoin project called ANDY — which has significantly declined from its all-time high.

Not that people in this space will care but @GROKERC20 $GROK was created by a scammer.

Same exact X/Twitter account has been reused for at least one other scam.

X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS

In the five hours following ZachXBT’s post, memecoin enthusiasts watched as GROK plunged 74% from its all-time high of $0.027 to as low as $0.007. Its price has since retracted to $0.011, per DexTools data.

In a follow-up post, ZachXBT pointed to an Etherscan transaction showing GROK's team sent roughly $1.7 million worth of the token to a burn address in a bid to reduce supply and restore confidence in the token.

The X account for the GROK token claimed in a Nov. 14 post that the development team had burned all of the tokens from the deployer address, some 180 million GROK worth roughly $2 million at current prices.

all tokens from the deployer wallet has been 100% burnt.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qL

GROK GROK

Related: Elon throws AI-generated insults at GPT-4 after OpenAI CEO mocks Grok

At its peak price of $0.027 on Nov. 13, GROK commanded a market capitalization of nearly $200 million, making it one of the largest new memecoins in the current cycle.

The memecoin