- GROK’s rally has hit a snag.
- The token plummeted following scam allegations.
- The token’s developer issued a personal note dismissing the allegations.
Elon Musk’s Grok AI-inspired token GROK has lost nearly $100 million in market capitalization over the last 24 hours, sending the price tumbling.
The development comes after a market observer linked GROK’s creator to projects that failed in the past, alleging that the developer is likely a scam artist.
GROK Plummets After Massive Gains in Nine Days
According to live data captured on CoinMarketCap, GROK debuted its trading with a week-long surge of 13,000%, outperforming its meme coin rival Pepecoin (PEPE). On November 13, the token peaked at $25 million in trading volume and had over 13,000 holders with a market cap of $150 million.
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But as fate would have it, the impressive figures were short-lived. Later in the day, blockchain investigator @ZachXBT shared damning revelations about GROK’s developer, shedding the gains in less than 24 hours.
Per ZachXBT’s revelations, GROK’s creator also developed and deployed ANDY tokens and changed their username multiple times on Telegram. Today, ANDY ranks the #29025 cryptocurrency by market cap with missing details on its trading volume and circulating supply.
Following the revelations by ZachXBT, GROK plunged from $0.027 to a mere $0.007, dumping a staggering 74% in just five hours. While the price slightly recovered and stabilized around $0.011, at press time, the token had plunged 58.5% in the last 24 hours.
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As the token’s value plunged, GROK’s team made a last-ditch effort to regain trust.
Bid to Salvage GROK’s Reputation
An hour after posting the scam allegations, ZachXBT shared another post alleging that the GROK team had transferred $90M GROK to a burn address in a desperate move to significantly shrink the token’s supply.
On November 14, the GROK team shared a reassuring “personal note” from the token’s developer confirming that he would forgo plans he had with GROK tokens held in the deployer address. This came after the team burned 180 million GROK allocated to the deployer.
Stay updated on how to stay safe when interacting with hype tokens like GROK:
Investor Alert: GROK Tokens Are Unrelated to Musk’s xAI
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