GROK Meme Coin Faces Accusations and Collapse
A meme coin named after Elon Musk’s artificial intelligence (AI) bot, Grok, has seen a significant drop in value following allegations from blockchain investigator ZachXBT. Just eight days after its launch, the Grok memecoin reached a market cap of $160 million.
ZachXBT’s Allegations
Despite a 13,000% increase in the token’s value over the past week and having around 11,500 holders, liquidity for GROK/USD remains limited. ZachXBT accused the token’s social media account of being recycled from a scam token project. This led to a spectacular collapse in the price of the meme coin, dropping by 74% from its all-time high to a low of $0.007.
GROK Team Attempts to Restore Confidence
To salvage the token’s reputation, the Grok team sent around $1.7 million worth of the token to a burn address to reduce supply. They also announced that all GROK tokens allocated to the deployer address had been incinerated.
The GROK Meme Coin’s Background
At its peak price of $0.027, The GROK meme coin had a market capitalization of nearly $200 million. However, dodgy meme coin projects have been on the rise recently, with some creators making off with millions and others transferring tokens into exchanges without warning.
Hot Take: The Future of Meme Coins in Crypto
The rise and fall of meme coins like GROK highlight both the potential for rapid gains and the risks associated with these speculative assets. While they can generate considerable interest and market capitalization, investors should approach them with caution due to their susceptibility to manipulation and sudden collapses.
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