Tuesday, November 5, 2024

Memecoin ‘Grok’ falls 74% after reports of fraud by its creator

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The price of the memecoin, which takes its name from Elon Musk’s artificial intelligence project, Grok, has fallen by more than 70% after a blockchain researcher; ZachXBT will claim that the coin’s social media account was recycled from a fraudulent project.

In the participation of Named ANDY, which has declined significantly from its peak.

Within five hours of ZachXBT’s release, memecoin enthusiasts watched GROK coin drop 74% from an all-time high of $0.027 to an all-time low of $0.007. Its price has since dropped to $0.011, according to engadget Data Powered by DexTools.

GROK’s price fell more than 70% within five hours following ZachXBT’s accusations. Source: Dextools

In a post by L trackingZachXBT noted A practical Etherscan shows that the GROK team sent approximately $1.7 million worth of tokens to a burned address to reduce supply and restore trust in the token.

Grok developer burns 90 million GROK tokens after price collapse. Source: Atharscan

GROK Token

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

The memecoin launched on November 5, the same day Elon Musk announced a supposed competitor to OpenAI’s ChatGPT, Grok AI. Over the next week, its value rose by 33,650% as memecoin traders rushed to capitalize on the hype.

Explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information provided here should not be considered as financial advice or investment recommendation. All investments and business transactions involve risks and it is every person’s responsibility to conduct due research before making an investment decision.

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