Musk-Inspired Memecoin ‘Grok’ Sees Quick Rise and Fall Amid Scam Suspicions: Details

Musk, as of now, has not addressed anything related to the Grok cryptocurrency.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 14 November 2023 14:46 IST

Musk-Inspired Memecoin ‘Grok’ Sees Quick Rise and Fall Amid Scam Suspicions: Details

Photo Credit: Reuters

Grok’s all-time high was recorded at $0.027 (roughly Rs. 2.25) on November 13

Highlights

Memecoins are inspired by hyped up buzzwords or memes
Dogecoin, Shiba Inu, Pepe Coin are examples of memecoins
Grok memecoin’s developer community remains anonymous

Elon Musk's new project called ‘Grok', that is essentially an AI chatbot service with a more humorous and uncensored approach as compared to other chatbots, has begun rolling out. As excitement about Grok bubbled up on social media, a memecoin project of the same name made a splash into the digital assets market. With a Musk-inspired branding and arriving at a time when the crypto market is at its highest valuation this year, the memecoin was quick to garner acceptance from the crypto community only for its fame to fizzle almost as soon as it formed.

At the time of writing, Grok was trading at $0.011880 (roughly Rs. 0.99) as per CoinMarketCap.

In the last few hours, the value of Grok tokens clocked a sharp decline of 70 percent. It happened after blockchain analyst who goes by the username of @zachxbt on X claimed that the social media accounts and websites related to Grok were repurposed from old crypto projects.

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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

Later, @zachxbt also pointed out that the developer team behind Grok transferred roughly $1.7 million (roughly Rs. 14 crore) worth tokens to a burn address that would increase the token's rarity quotient and make it more enticing to investors.

As soon as this news began spreading, floodgates of rumours and suspicions about Grok being a scam coin opened on social media. The altcoin's valuation that had reportedly touched the mark of $160 million (roughly Rs. 1,331 crore) earlier this week, is currently valued at merely over $92 million (roughly Rs. 772 crore).

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I was the first person on X to raise awareness to the $GROK recycled X account five days ago. Was a yellow flag to me & one of the main reasons I didn't buy. Doesn't mean it's a scam, just means dev has launched many projects before. Let's see how they rebound today. @GROKERC20 pic.twitter.com/kkvbh0iewW
— JAKE (@JakeGagain) November 13, 2023

Is $GROK the next scam on DEX?

After Elon launched #Gork AI, scammers took this opportunity and launched a token on the same coin ticker $GORK and gave a 200-500X price surge in the next 10 days.

:red_circle:But why it's suspicious?

:arrow_right: Check the market cap of 86M and available… pic.twitter.com/sOyiIf0JZN
— Zia ul Haque (@ImZiaulHaque) November 14, 2023

Some general panic selling in the meme pins market caused by Grok scam, @ERC20Rock is doing the right thing, don't fade Anon, is just a $ROCK :rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket::rocket: pic.twitter.com/CthAwvkfLb
— HumbleMan :man_in_lotus_position: (@treso888) November 13, 2023

Members of the crypto community are warning each other about making careful investment decisions around newly emerging and hyped cryptocurrencies like Grok.

Musk started rolling out GrokAI on November 5 and on the same day, this crypto project made its debut on social media. Memecoin traders were quick to hop onboard the hyped altcoin and within one week, the value of Grok recorded continuous spike. Its all-time high was recorded at $0.027 (roughly Rs. 2.25) on November 13.

Musk, as of now, has not addressed anything related to the Grok cryptocurrency.

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Further reading: Cryptocurrency, Grok, Memecoin, Elon Musk

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More