GROK, a suspected AI chatbot-inspired memecoin, has seen its value plummet by more than 50% after reports emerged that the developer was linked to a previous crypto scam.
The memecoin is named after Elon Musk’s chatbot service Grok xAI, which was launched earlier this month. According to CoinMarketCap, the logo for the token looks remarkably similar to the new X logo. However, that’s where the similarity ends, as the token is completely unrelated to the Musk-led company.
Last week, CryptoSlate reported that Musk said none of his companies, including xAI, Tesla and social media platform X, would ever issue a cryptocurrency token.
ZachXBT reveals GROK developer’s dark past.
On-chain sleuth ZachXBT revealed that GROK’s developer is a scammer who repurposed the project’s exact X/Twitter account for at least one other scam. He said:
“Not that the people in this room care, but @GROKERC20 $GROK was created by a scammer. The exact same X/Twitter account has been repurposed for at least one other scam.”
Screenshots shared by ZachXBT showed the developer’s previous issuance of an ANDY token, which no longer exists, and highlighted multiple changes to the developer’s Telegram handle.
Following ZachXBT’s announcement, the token experienced a significant drop in value amid a significant increase in trading volumes, according to data from Coingecko.
For context: crypto analyst Lookonchain reported that an address sold 27.32 million GROK for 212 ETH two hours before ZachXBT made its revelation. Shortly afterwards, the same address bought back 16.3 million GROK at a discounted price of 80 ETH, worth $164,000.
Since then, the project has attempted to regain public trust, with the developer burning through 180 million tokens worth more than $2 million. “$GROK will continue as a 100% community owned project. No more tokens will be held in the deployer’s wallet,” said a message on the official X handle.
Meanwhile, this incident highlights the tactics of malicious actors who focus on compelling stories to gain attention within the crypto community. Crypto traders should prioritize thoroughly researching a project before investing.
