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

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.

Not that people in this space will care but @grokirk20 $GROK Created by a scammer.

The same X/Twitter account has been reused in at least one other scam.

X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS

– ZackXPT (@ZackXPT) November 13, 2023

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.

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 Token

All tokens from the dealer’s wallet have been burned 100%.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qL

Your puppy is your puppy

-GROKERC20 (@GROKERC20) November 13, 2023

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.

Your puppy has just been releasedhttps://t.co/e8xQp5xInk

– Elon Musk (@elonmusk) November 5, 2023

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