On November 13, 2023, the price of Grok, a meme currency named after Elon Musk’s artificial intelligence project, fell by more than 70% following allegations made by blockchain expert ZachXBT that the token’s social media accounts were taken from a fraudulent token project.
ZachXBT tweeted a series of screenshots on November 13th, demonstrating how several GROK token-related websites and social media accounts were recycled from previous projects, including the now-defunct ANDY memecoin project.
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ZachXBT also brought up the fact that, in an effort to lower supply and boost trust in the token, the GROK team had transferred almost $1.7 million worth of the token to a burn address.
Grok Plummets: Over 70% Crash Amidst Scam Allegations,Grok Plummets: Over 70% Crash Amidst Scam Allegations
In a post dated November 14, the GROK token’s official X account stated that the development team has destroyed all 180 million GROK, or almost $2 million at current rates, from the deployer address. ZachXBT countered that the team had already sold their tokens on gullible investors and that this was a “damage control” tactic.
In the five hours that followed ZachXBT’s article, the price of GROK fell 74% from its peak of $0.027 to as low as $0.007. DexTools data indicates that since then, the price has dropped to $0.011.
The price collapse of GROK serves as a warning about the dangers associated with funding meme coins and other cryptocurrency ventures. Before funding any business, investors should always conduct their own due diligence. They should also steer clear of ventures that reuse pre-existing websites and social media profiles.
Grok’s price drops by 70% following claims of fraud.
Investors in the cryptocurrency market should take note of the Grok price drop. Because they are frequently founded on excitement and conjecture and have no practical use, memecoins are especially dangerous. Particular caution should be exercised by investors when it comes to meme coins that are introduced following news or declarations from well-known individuals such as Elon Musk.
A warning sign is the Grok team’s purported recycling of webpages and social media profiles from a fraudulent coin scheme. It implies that the group might not be genuine and might be more focused on making money off of investors than on developing a product that succeeds.
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It may be interpreted as a sign of good faith that the team decided to burn $1.7 million worth of tokens in an effort to lower supply and boost trust in the token. It’s also feasible, though, that the group was only attempting to contain the damage and stop the price from dropping any further.
All things considered, the Grok price drop serves as a reminder of how crucial it is to conduct independent research before contributing to any cryptocurrency project. Memes and enterprises with repurposed websites and social media profiles should raise special red flags for investors.
Grok Plummets: Over 70% Crash Amidst Scam Allegations,Grok Plummets: Over 70% Crash Amidst Scam Allegations,Grok Plummets: Over 70% Crash Amidst Scam Allegations , Grok Plummets Crypto news, Grok Plummets News