The Price Of Memecoin Grok Falls 70% After Accused Of Engineering From Theft Project

JAKARTA - The price of a memecoin that took the name of Elon Musk's artificial intelligence project, "Grok," slumped more than 70% after blockchain tracker ZachXBT suspected that the token social media account was taken from a previous fraudulent token project.

In an X upload (formerly Twitter) on November 13, ZachXBT shared screenshots showing various social media accounts and websites associated with the Grok token (GROK) taken from an old project, including an abandoned memecoin project called ANDY, which experienced a significant decline from its previous high.

Within five hours of ZachXBT's upload, memecoin fans watched the GROK drop 74% from its previous high of 0.027 US dollars to as short as 0.007 US dollars. The price has since undergone a correction to 0.011 US dollars, according to DexTools data.

In a follow-up upload, ZachXBT shows Etherscan transactions showing the GROK team sending around $1.7 million worth of tokens to burn addresses in an effort to reduce supply and restore confidence in the token.

The X account for the GROK token claims in a post on November 14 that the development team has burned all the tokens from the decoder address, about 180 million GROC worth about 2 million US dollars at current prices.

At its peak price of $0.027 on November 13, GROK has a market cap of nearly $ 200 million, making it one of the largest new memecoins in the current cycle.

The memecoin was launched on November 5, on the same day Elon Musk announced a rival he called OpenAI's ChatGPT, Grok AI. Over the following week, its value increased by 33.650% as memecoin traders tried to take advantage of the sensation.