New Grok Memecoin Plummets 70% After Social Media Scam Allegations

Web3 scams Voice of crypto
Web3 scams Voice of crypto
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Key Insights

  • A new memecoin called $GROK was launched on the same day that Elon Musk announced his new AI venture, Grok AI.
  • The Grok memecoin quickly gained traction and its price exploded by over 33,000% in a single week.
  • However, a blockchain sleuth named ZachXBT dug up some evidence that the Grok memecoin was created from a recycled scam project called ANDY.
  • This evidence shows that the social media accounts and websites associated with GROK were resurrected from ANDY
  • As soon as ZachXBT's posts went viral, GROK's price plunged by 74% in five hours and its market cap shrunk by more than $140 million.

The thing about memecoins is that they capitalize heavily on internet hype.

It was only a matter of time before someone came up with a memecoin named after Elon Musk's new OpenAI competitor, Grok.

And somebody did. The only difference is that the $GROK story is much more interesting than that of the average memecoin.

Yes, somebody did create a new memecoin called $GROK. However, quite recently the value of this token has dropped massively after a blockchain sleuth pulled up some dirty details about its origins.

It gets even crazier when we realize that this "origin" isn't even Grok's own.

The Rise And Fall Of $GROK: Created Out Of A Recycled Scam?

The Grok memecoin was launched on Nov. 5, the same day that Elon Musk announced Grok AI, his new AI venture.

Musk, it turns out, claims that Grok is even more powerful than ChatGPT.

As the hype of the legit Grok AI grew, the hype around the Grok memecoin grew as well.

It quickly gained traction among crypto enthusiasts and people who wanted to make a few quick bucks from the hype around Musk's new announcement.

It gets even crazier, how GROK's price exploded by over 33,000% in a single week.

Grok's price explosion
Grok's price explosion

Grok soon reached an all-time high of $0.027 on Nov. 13, with a market cap of about $200 million. This put Grok on par with other explosive memecoins like PEPE and SHIB.

However, things turned sour pretty quickly for Grok, as ZachXBT, a crypto scam survivor cum blockchain sleuth dug up some pretty disturbing secrets.

Grok recycled from a scam
Grok recycled from a scam

According to ZachXBT, the social media accounts and websites associated with GROK were resurrected from another memecoin scam known as ANDY.

The Evidence of a Scam

ZachXBT attached a few screenshots of various online platforms that showed the similarities between GROK and ANDY.

For example, the Twitter, discord and Telegram accounts for GROK have been changed several times, according to the snapshot below.

Names changed from ANDY and several others to Grok
Names changed from ANDY and several others to Grok

ZachXBT also pointed out that the contract address for GROK was created by an address that also deployed several other scam tokens, such as PANDA, DOGE, and SHIBA.

Historically, these tokens experienced huge price spikes followed by steep declines, indicating a pump-and-dump scheme.

The Aftermath

As soon as ZachXBT's posts went viral, GROK's price has since plunged by 74% in five hours.

The market cap has also dropped from $0.027 to about $0.007. The token's market cap has also shrunk by more than $140 million, wiping out the gains of many investors.

The developer, likely trying to salvage the situation, claimed that they had burned all of the tokens from the deployer address.

These burned tokens were worth about 180 million GROK worth about $2 million at current prices in this transaction and this one.

The Grok developer team claims to have burned tokens
The Grok developer team claims to have burned tokens

The Grok developer team has also renounced the token contract and has mentioned that they have no connections to  $ANDY or any other scam tokens and that they were working on improving the project.

The contract was renounced by the GROK team
The contract was renounced by the GROK team

However, many users are still not convinced by the team's explanation and continue to accuse them of being scammers.

Others even claim to have lost money from investing in GROK and have warned others to stay away from the token.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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