Memecoin “Grok” Drops 74% Due To Creator Fraud Allegations

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Memecoin “Grok,” which takes its name from Elon Musk’s AI project, saw a price drop of more than 70% following allegations made by blockchain expert ZachXBT that the token’s social media page was taken from a fraudulent token project. ZachXBT posted photos of several social media profiles and websites related to the GROK symbol on Nov. 13. These images were taken from previously abandoned memecoin initiatives, such as ANDY, that have drastically decreased in value since their peak.

November 13 Records GROK’s Highest Value Of Around $20M

Memecoin aficionados saw GROK fall 75% from its peak of $0.037 to about $0.007, which is its lowest point, in the five hours that followed ZachXBT’s article. DexTools data indicates that since then, the price has dropped to $0.012. In an attempt to decrease supply and boost trust in the token, the meme coin’s team sent almost $1.7M value to a burn address, according to an Etherscan transfer that ZachXBT cited in a follow-up article. The team for development allegedly destroyed all 180M of its tokens, or over $2M at present rates, using the deployer address, according to a post made by the X profile for the GROK symbol on November 14.

One of the biggest new meme-coins of the current cycle, the token had a market value of around $200 million at its highest cost of $0.037 on November 13. On November 5, memecoin was introduced, coinciding with Elon Musk’s announcement of Grok AI, his purported rival to OpenAI’s ChatGPT. Its value surged by 33,660% in the next week as meme-coin dealers hurried to take advantage of the excitement.