Elon Musk memecoin ‘Grok’ Falls 74% on Creator Scam Claim

A memecoin named after the Grok AI project plunged after suspicions that its social media account was copied from a previous scam token.

Elon Musk memecoin ‘Grok’ Falls 74% on Creator Scam Claim

The value of a memecoin that derives its name from Elon Musk’s artificial intelligence project “Grok” fell by more than 70% after the assertion made by blockchain investigator ZachXBT that the token’s social media account had been repurposed from a fraudulent token project.

ZachXBT shared screenshots in a post on X (formerly Twitter) on November 13 showing how numerous social media accounts and websites associated with the Grok (GROK) token were repurposed from defunct projects, including the abandoned memecoin project ANDY, whose value has dropped substantially since its all-time high.

GROK fell 74% from its all-time peak of $0.027 to a low of $0.007 in the five hours that followed ZachXBT’s post, as observed by memecoin enthusiasts.

As of now, its price has decreased to $0.011, according to DexTools data.

Elon Musk memecoin ‘Grok’ Falls 74% on Creator Scam Claim
GROK’s price plunged more than 70% in five hours following ZachXBT’s allegations. Source: DexTools

ZachXBT referenced an Etherscan transaction in a subsequent post that demonstrated GROK’s team transferred an estimated $1.7 million worth of the token to a burn address to diminish supply and reinstate trust in the token.

Elon Musk memecoin ‘Grok’ Falls 74% on Creator Scam Claim
The Grok developer burned 90 million GROK tokens after the token’s price plummeted. Source: Etherscan

In a post dated November 14, the GROK token’s X account asserted that the development team had destroyed the entire supply of tokens from the deployer address.

Each token was valued at approximately $2 million at current prices.

GROK, which peaked at $0.027 on November 13, possessed an almost $200 million market capitalization at that time, placing it among the most prominent new memecoins of the current cycle.

The memecoin was introduced on November 5, the same day Elon Musk declared Grok AI, an alleged competitor to OpenAI’s ChatGPT.

Furthermore, the following week, its value increased by 33,650% as memecoin traders raced to take advantage of the frenzy.