Grok (GROK), an altcoin that recently attracted attention with its meteoric rise, has experienced a staggering 90 percent drop in just 24 hours. The revelation of the Grok scandal, triggered by blockchain detective ZachXBT, has raised concerns about the legitimacy of the project across the cryptocurrency community. Here are the details…
Altcoin inspired by Elon Musk crashed
Grok token, which rose to $ 0.06766 during the day, is currently only at $ 0.01026. This reflects a significant loss in market value. ZachXBT’s investigation revealed questionable origins and potential ties to a scam artist, causing its market value to drop more than 50% from $160 million to $78 million. Before the scandal broke, Grok had attracted more than 12,000 owners and accumulated $1.66 million in liquidity in its short two weeks of existence, according to DEXTools. However, despite the contract being abandoned, the emergence of fraudulent activities attracted attention.
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
Grok’s collapse carries broader implications for market dynamics, highlighting the fragility of investor sentiment and the rapid repercussions of fraud disclosures. The sudden loss of more than half of its market value underscores the unforgiving nature of cryptocurrency markets and calls for greater due diligence among investors. It is necessary to distinguish between Grok Token and Elon Musk’s Grok AI. Because it is very important to note that although they share a name, they are different entities.
Developer burned $1 million worth of coins
Meanwhile, ZachXBT’s latest tweet states that GROK’s developer burned GROK worth $1 million. Following these developments, Lookonchain drew attention to an investor trading GROK. According to the on-chain platform, since the “reveal” of ZachXBT, an address starting with 0xbb03 sold 30 million GROK for 195 ETH. After the sharp price movements, he bought 105 million GROK for 2 ETH.
Update: Their dev just burned $90M GROK ( ~$1M)
0xa0c6d2bf73a6ec65048e6337d8a09bf42df136c68e94170da268804f70b3bd36 pic.twitter.com/kbj9oxTbF1
— ZachXBT (@zachxbt) November 13, 2023
Since @zachxbt revealed that $GROK was created by a scammer, 0xbb03 immediately dumped all 30.97M $GROK for 195 $ETH($400K).
This guy spent 2 $ETH to buy 105M $GROK within 10 minutes after opening trading, making a total of 227 $ETH ($460K) on $GROK.https://t.co/3fiIbqqatl pic.twitter.com/mNYUnuK01N
— Lookonchain (@lookonchain) November 14, 2023
Fraud allegations are critical
As a result, the GROK token inspired by Elon Musk’s artificial intelligence service on the X platform is facing skepticism as investors grapple with the consequences of potential fraudulent activity. As the cryptocurrency community grapples with Grok’s dramatic decline, questions arise about how stakeholders will react and what safeguards can be implemented to protect against future scams. The Grok saga serves as a cautionary tale that encourages rigorous vetting of projects and the development of an ecosystem that is resilient to fraudulent activity in the fast-paced and speculative environment of the crypto industry. Plagued by instances of fraud and market manipulation, the industry faces a pivotal moment in addressing these challenges head on.
