What is GROK? Is the Elon Musk-Inspired Token Scam?

• Memecoin GROK has experienced a significant downfall of over 74% amid scam allegations.
• To regain trust, GROK token’s official account states it burned 180 million tokens, worth $2.23 million.

The price of the memecoin named after Elon Musk’s artificial intelligence project, “Grok,” has taken a nosedive, plummeting by over 74%. The sharp decline followed the tweet from blockchain sleuth ZachXBT, who alleged that the token’s social media presence was reused from a previous scam token project, specifically pointing out the repurposing of accounts associated with an abandoned memecoin called ANDY.

The newly born memecoin Grok (GROK) made its debut on November 5, the same day Elon Musk unveiled Grok AI as an expected competitor to OpenAI’s ChatGPT. The memecoin quickly gained traction in the following week, experiencing a staggering 2600%.

However, on Nov 13th screenshots shared by ZachXBT showcased the connections between various social media accounts and websites related to the GROK token and the recycled elements from the previous ANDY project. Also, he claimed that GROKERC20 (GROK) was being “created by a scammer.”

In response to these allegations, the value of GROK plunged from its Nov 13th high of $0.027 to a low of $0.007, according to data from DexTools. This significant drop resulted in a market capitalization decline from over $130 million to approximately $78 million.

GROK Burned 100% Tokens

In an attempt to damage control, the official X account for the GROK token announced in a Nov 13 post that the development team had burned all tokens from the deployer address, amounting to 180 million GROK, valued at around $2.23 million at current prices.

Despite this claim, the accuracy of the provided information remains unverified, as other prominent cryptocurrency statistics websites like CoinMarketCap and CoinGecko present conflicting data. While DexTools indicates a market capitalization of $78 million, CoinGecko suggests a fully diluted valuation of $91 million.

At the time of writing, GROK is trading at $0.0120, reflecting a decline of more than 33% in the last 24 hours. Despite the sharp drop in value, the daily trading volume has surged by 320% to reach $142 million. The situation continues to unfold in the cryptocurrency community.