Elon Musk’s Grok AI bot-inspired memecoin $GROK has turned into the focal point of a crypto controversy, shaking the cryptocurrency community as questions about its realness come up. Zachxbt raised concerns on X (formerly Twitter) on November 13, suggesting that Grok’s online presence may be a façade with assets repurposed from failed projects, including a memecoin named Andy.
Not that people in this space will care but @GROKERC20 $GROK was created by a scammer.
Same exact X/Twitter account has been reused for at least one other scam.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
Massive Value Drop For GROK
This controversy triggered an emotional value drop for Grok, plunging from $0.024 to just $0.008 inside a tumultuous five-hour run, denoting a staggering more than 70% decrease. While a modest recuperation followed, carrying the price to its current trading value of $0.0127, the initial drop left investors wrestling with sudden and significant losses.
With an end goal to salvage the token’s face and restore investor confidence, the Grok team went to drastic lengths. On November 14, they reported the burning of all tokens assigned to the deployer, totaling approximately 180 million Grok tokens, a move executed by means of their X account. At the token’s current value, this burn added up to around $2 million.
all tokens from the deployer wallet has been 100% burnt.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qLGROK GROK
— GROK (@GROKERC20) November 13, 2023
Increase Trading Volume Despite The FUD
The repercussions of the Grok controversy raises substantial questions and highlights expected risks for traders in the volatile crypto space. The 24-hour trading volume surged by more than 240%, demonstrating increased action and attention following the controversy. However, the price decline remains substantial, with a staggering 40% decrease, underscoring the challenges looked by tokens associated with unexpected controversies.
Investors who witnessed the tumultuous events surrounding Grok are presently confronted with the more extensive implications of speculative investments in meme-inspired tokens. The episode serves as a sign of the significance of exhaustive research and cautious decision making in the unpredictable universe of cryptocurrencies.
As the crypto community reflects on the Grok controversy, it emphasizes the requirement for clear communication from token projects and an uplifted awareness of expected red flags. The occurrence sheds light on the sensitive balance between market hype, fundamental value, and the associated risks inside cryptocurrency investments trading.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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