Creator Scam Says Elon Musk’s ‘Grok’ Decrease By 74%

The market for memecoins saw a sharp decline when the Elon Musk-inspired token, “Grok,” fell 74% from its highest point of $0.027 to a low of $0.007. This rapid drop occurred in the five hours following a remark by ZachXBT.

The Grok project’s demise started when its inventor, ZachXBT, made claims about a possible hoax on social media. Investors and Memecoin fans soon noticed, which caused a sharp sell-off and the subsequent 74% drop in Grok’s value. ZachXBT had insinuated in one of their posts on X that the idea that GROK was created by a scammer may have affected it’s influence and investor’s confidence.

ZachXBT mentioned an Etherscan transaction in a later article, which showed that the Grok team had transferred an estimated $1.7 million worth of tokens to a burn address. This action was explained as an effort to lower the token’s supply and rebuild community confidence. The quick drop in the coin’s value is linked to a severe lack of investor confidence.

GROK Expresses Unpredictabilities, Falls By 70%, As Vulnerability Grows

In the memecoin space, Grok had made significant progress, peaking on November 13 at $0.027. With a market valuation of about $200 million at the time, the coin cemented its status as one of the most popular new memecoins of the current market cycle.

The Grok event highlights the difficulties and unpredictabilities in the memecoin sphere, where initiatives frequently depend on sentiment and community trust. Investors in memecoins are vulnerable to sudden fluctuations in the market caused by chatter on social media, declarations by creators, and market conjecture. The Grok case exemplifies how a lone allegation of possible wrongdoing may quickly devalue and damage a memecoin’s reputation.

Grok AI was introduced into the market on November 5th, the same day Elon Musk and OpenAI launched the ChatGPT. News has it that the value of the memecoin increased by 33,650% as traders hastened up to leverage the hype. However, Elon Musk’s Grok had fallen by over 70%.

Meanwhile, ZachXBT’s assessment claimed that Grok’s social media handles had redirected its purpose from a con digital assets project. One of GROK’s failed (redirected) projects is the ANDY: a closed memecoin project known to have fallen from its all-time high to its lowest.

Concerns Ensue On GROKs, Cases Of Fraud Sighted

On November 13th, Grok posted on its X platform that all the deployer wallets had been completely burnt. In another account, Grok posted on November 14 that the team in charge of the development had burnt over 180 million units of GROK, worth almost  $2 million (at the current price).

Concerns about the long-term viability and sustainability of memecoins surface as the cryptocurrency community watches the aftermath of the Grok affair. Several memecoins have garnered interest owing to their playful and community-focused characteristics, but over the years, there have been cases of fraud and significant price swings.

Recent observation shows that memecoin projects’ integrity and risk mitigation may be greatly enhanced by community-driven project supervision systems and regulatory scrutiny as the market develops. GROK trades at 0.000000032 as of press time, with a 12.28% decrease.

It closed with a stagnant market capitalization of $355,434.2 after a trading volume of $24,290.33, an 82.51% decline. GROK currently ranks #3375 on CoinMarketCap, with a circulating supply of over 10 trillion.