A memecoin named after the Grok AI project has plummeted following allegations that its social media accounts were recycled from those of a former scam coin.
The price of the memecoin named after Elon Musk’s artificial intelligence project “Grok” has plummeted by more than 70% after blockchain sleuth ZachXBT claimed that the token’s social media accounts were recycled from a scam token project.
In a Nov. 13 (ex-Twitter) post, ZachXBT shared a number of screenshots showing that various social media accounts and websites associated with the Grok (GROK) token were repurposed from old projects, including an abandoned memecoin project called ANDY that has fallen from its all-time high.
In the five hours following ZachXBT’s post, memecoin enthusiasts watched GROK plunge 74% from its all-time high of $0.027 to a low of $0.007. Its price has since fallen back to $0.011, according to DexTools.
In a follow-up post, ZachXBT pointed out that Etherscan transactions showed the GROK team sending approximately $1.7 million worth of tokens to a burn address in an effort 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 tokens in the deployer’s address, which is about 180 million GROKs worth about $2 million at current prices.
At its peak of $0.027 on November 13, GROK had a market cap of nearly $200 million, making it one of the largest new memecoins of the current cycle.
memecoin launched on November 5, the same day Elon Musk announced Grok AI, a competitor to OpenAI’s ChatGPT. In the following week, memecoin increased in value by 33,650% as traders rushed to cash in on the hype.
