In a shocking turn of events, the price of the memecoin “Grok,” inspired by Elon Musk’s AI project, plummeted by over 70% following allegations from blockchain investigator ZachXBT. The investigation revealed that the token’s social media accounts were repurposed from a previously abandoned memecoin project named ANDY.
ZachXBT, in a Nov. 13 post on X (formerly Twitter), shared compelling screenshots exposing the reuse of social media accounts and websites associated with Grok (GROK), causing a rapid decline in the token’s value. Grok fell a staggering 74% from its all-time high of $0.027 to as low as $0.007 within five hours of the revelations. Although it has slightly recovered to $0.011, the impact on investor confidence is palpable.
In a bid to salvage the situation, Grok’s development team took swift action. ZachXBT highlighted an Etherscan transaction indicating that the team burned approximately $1.7 million worth of GROK tokens, aiming to reduce the token supply and restore trust in the project. The X account for the GROK token later claimed in a Nov. 14 post that the entire deployer address, containing 180 million GROK worth roughly $2 million at current prices, had been burned.
This incident serves as a stark reminder of the risks associated with meme tokens and the importance of thorough due diligence in the volatile crypto space. Investors are urged to exercise caution and remain vigilant as they navigate the ever-evolving landscape of blockchain and cryptocurrency projects.
