The world of cryptocurrency was rocked by the sudden decline of Grok, a meme coin named after Elon Musk’s AI bot, Grok AI. Within just eight days of its launch, the coin’s market capitalization had reached $160 million, only to plummet by 74% following fraud allegations from blockchain investigator ZachXBT.
ZachXBT accused the Grok meme coin of being a recycled scam project, citing evidence of reused social media accounts from a previous scam token project. This revelation led to a significant drop in Grok’s value, from its all-time high of $0.027 to a low of $0.007, with a slight recovery to $0.011. In response, the Grok team burned approximately $1.7 million worth of the token in an effort to reduce supply and stabilize the price.
At its peak, Grok was one of the largest new meme coins in the market, with a market cap of nearly $200 million. Its launch coincided with Elon Musk’s announcement of Grok AI, generating a surge in interest and price as enthusiasts sought to capitalize on the hype.
The cryptocurrency market has seen a rise in meme coin projects, such as BALD and Pepecoin, which have attracted significant attention and market capitalization. However, these projects often carry high risks, as sudden team actions can drastically affect token value. Investors are advised to exercise caution and conduct thorough research before engaging in such volatile markets.