The Fall of $GROK: Investigator Ties Creator to Possible Scams
On November 13, the market cap of AI-inspired altcoin $GROK took a nosedive after blockchain investigator ZachXBT linked its creator to potential previous scams. The community of $GROK supporters rallied in response to the allegations against the project and its developer, who has reportedly been involved in creating other cryptocurrencies in the past.
ZachXBT, an on-chain sleuth, pointed out that the project’s X account had been used to promote crypto tokens that may have been involved in scam activities. This revelation caused a significant decline in $GROK’s market cap and price, which had previously climbed above $120 million.
Backers of the project quickly organized an X Spaces event to address what they labeled as FUD (fear, uncertainty, and doubt) and to counteract negative sentiment. Additionally, the project’s developer burned tokens from the deployer wallet, amounting to an estimated $1 million, in an attempt to restore confidence among investors.
Despite these efforts, $GROK’s market cap remained below $100 million, with its price plummeting by over 17% within 24 hours. The Grok token was one of several altcoins launched in early November 2023, coinciding with the debut of Elon Musk’s Grok AI chatbot. It’s important to note that these tokens are not affiliated with Musk’s company and were simply part of a trend of creating cryptocurrencies around popular events.
Hot Take: Community Response and Price Impact
The $GROK token experienced a significant decline in market cap and price following allegations against its developer. The community responded by organizing events and burning tokens from the deployer wallet to counteract negative sentiment. However, these efforts were not enough to prevent a considerable decrease in value within a short timeframe. This incident highlights the impact of negative publicity on cryptocurrency prices and investor sentiment.
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