The price of a memecoin named after Elon Musk’s AI project “Grok” took a nosedive, plummeting by over 70% after blockchain investigator ZachXBT alleged that the token’s social media presence was recycled from a previous scam token project.
In a tweet on November 13, ZachXBT shared screenshots revealing that various social media accounts and websites associated with the Grok (GROK) token were repurposed from abandoned projects, including a memecoin called ANDY, which had seen a significant decline from its all-time high.
In the aftermath of ZachXBT’s tweet, the memecoin community witnessed GROK’s price plummet by a staggering 74%, dropping from its all-time high of $0.027 to a low of $0.007 in just five hours.
Subsequently, the price partially recovered to $0.011, as per data from DexTools.
In a subsequent post, ZachXBT highlighted an Etherscan transaction that showed the GROK team sending approximately $1.7 million worth of the token to a burn address, a move aimed at reducing the token’s supply and restoring confidence in it.
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The official GROK token account, in a November 14 post, claimed that the development team had burned all the tokens from the deployer address, totaling around 180 million GROK, valued at approximately $2 million at the current market prices.
At its peak price of $0.027 on November 13, GROK had a market capitalization of nearly $200 million, establishing itself as one of the largest new memecoins in the current cycle.
GROK was launched on November 5, coinciding with Elon Musk’s announcement of Grok AI, purportedly a competitor to OpenAI’s ChatGPT.
In the following week, the memecoin’s value experienced an astonishing 33,650% surge, driven by memecoin traders looking to capitalize on the hype.
In summary, the price of the Grok memecoin experienced a dramatic drop following allegations of recycled social media accounts and a subsequent token burn attempt by the development team.
This rollercoaster ride in value occurred amid the fervor surrounding Elon Musk’s Grok AI project, which had initially fueled the memecoin’s meteoric rise.
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