Memecoin $GROK, inspired by Elon Musk’s artificial intelligence project ‘Grok AI’, took a big fall in price, dropping by over 50% in a day.
This was seemingly triggered by speculations that claimed that its developer was linked to projects that were scams in the past.
Blockchain sleuth going by the username ZachXBT took to X (formerly Twitter) to expose the various social media accounts and websites tied to the Grok token. These were noted to be repurposed from old projects that failed to take off after issuance, terming it a “scam”.
ZachXBT also posted screenshots showing that the memecoin deployer had previously issued ANDY tokens and changed their usernames multiple times on the messaging application Telegram.
Just a few hours into posting this, $GROK plunged 74% from its all-time high of $0.027 to as low as $0.007. At the time of press, it was trading just above it, showing a 50% daily fall in price.
Data also showed large token holders selling amounts equivalent to $30,000, driving the price down further. Selling activity also affected the token, taking its trading volumes to over $100million.
Developers, on the other hand, took to burning all of their token supply. In another post, ZachXBT pointed out how an Etherscan transaction showed that the GROK’s team sent roughly $1.7m worth of the token to a burn address. Tokens are often intentionally burnt in a bid to reduce supply and restore confidence in its price.
The price and sentiment surrounding the memecoin continued to fluctuate even at the time of writing. At the time of its peak, $GROK commanded a market capitalisation of nearly $200m. It had managed to amass over 13,000 holders and traded over $25m in volume on decentralised exchanges.
The AI-inspired token was launched on 5 November, which is the same day Musk announced plans regarding his ChatGPT competitor – Grok AI. However, it is not related to the chatbot service at all, which is currently in beta testing.