The price of a meme coin named after Elon Musk's AI project, "Grok," experienced a drastic nosedive of more than 70% following allegations made by blockchain investigator ZachXBT. ZachXBT revealed through a Nov. 13 social media post, previously on Twitter, that various social media accounts and websites associated with the Grok (GROK) token were repurposed from previous projects, including one from an abandoned memecoin project named ANDY. This led to a sharp decline in the coin's value from its all-time high within just five hours.
Shortly after ZachXBT's disclosures, the GROK token witnessed a significant drop in value, plummeting from its peak price of $0.027 to a low of $0.007, marking a 74% decrease. Subsequently, the token price recovered slightly, settling at $0.011 as per DexTools. In response, ZachXBT pointed to Etherscan transactions, revealing that the GROK team burned approximately $1.7 million worth of tokens in an attempt to decrease the token supply and rebuild confidence among investors.
An update from the GROK token's account on Nov. 14 indicated that the development team had taken action by burning all tokens held in the deployer's address, totaling around 180 million GROK, equivalent to roughly $2 million at current market rates. At its peak value of $0.027 on November 13, GROK boasted a market capitalization of nearly $200 million, positioning itself among the most substantial new meme coins within the ongoing market cycle.
The meme coin debuted on November 5, coinciding with Elon Musk's announcement of Grok AI, described as a competitor to OpenAI's ChatGPT. Following this unveiling, the token's value skyrocketed by a staggering 33,650% over the subsequent week, attracting significant attention and investment from memecoin traders amid the widespread hype surrounding Elon Musk's AI venture.
