The world of cryptocurrency was rocked by the sudden downfall of Grok, a meme coin named after Elon Musk’s AI bot, Grok AI. Within just eight days of its launch, Grok had reached a market capitalization of $160 million, but it plummeted by 74% following fraud allegations made by blockchain investigator ZachXBT.
ZachXBT accused Grok of being a recycled scam project, revealing that the token had reused social media accounts from a previous scam token project called ANDY. This led to a significant decline in Grok’s value, dropping from its all-time high of $0.027 to a low of $0.007. The Grok team attempted to restore faith in the token by burning approximately $1.7 million worth of it in a bid to stabilize the price.
At its peak, Grok was one of the largest new meme coins in the market, with a near $200 million market cap. Its launch coincided with Elon Musk’s announcement of Grok AI, leading to a surge in interest and price. The cryptocurrency market has seen a rise in meme coin projects, but investors are advised to exercise caution and conduct thorough research before engaging in such volatile markets.