The Rise and Fall of Memecoin GROK
After blockchain investigator ZachXBT accused the social media account of the memecoin GROK of being recycled from a scam token project, the coin’s value dropped by over 70%. ZachXBT shared evidence showing that the accounts and websites linked to GROK were repurposed from an old project called ANDY, which had significantly declined from its all-time high.
Within five hours of ZachXBT’s post, GROK plummeted 74% from its peak of $0.027 to as low as $0.007 before rebounding slightly to $0.011. In an attempt to restore confidence, the team behind GROK sent $1.7 million worth of tokens to a burn address in a bid to reduce supply.
On November 14, the GROK team claimed that they had burned all the tokens from the deployer address, amounting to 180 million GROK worth roughly $2 million at current prices.
The Meteoric Rise and Sudden Fall
GROK was launched on November 5, the same day Elon Musk announced his competitor to OpenAI’s ChatGPT, Grok AI. The coin’s value surged by 33,650% as traders rushed to capitalize on the hype. At its peak price of $0.027 on November 13, GROK had a market cap of nearly $200 million.
Elon Musk’s tweet about Grok AI coincided with the launch of GROK, driving up the value of the memecoin.
Hot Take: Lessons Learned
The rise and fall of GROK serves as a cautionary tale for investors in meme coins. It underscores the importance of due diligence and skepticism when investing in such volatile assets. While meme coins can offer lucrative returns, they also come with significant risks, making it crucial to thoroughly research and assess their legitimacy before investing.
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