Elon Musk’s GROK plummets 70%, here’s why
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- GROK nosedived from its all-time excessive of $0.027 to a low of $0.007 inside 5 hours.
- The GROK growth crew despatched roughly $1.7 million price of the token to a burn handle.
In a swift flip of occasions, the meme coin linked to Elon Musk’s AI challenge, Grok [GROK], skilled a staggering 70% plummet in worth following allegations by blockchain investigator ZachXBT.
On the thirteenth of November, ZachXBT disclosed on X (previously Twitter) that GROK’s social media accounts and web sites had been repurposed from earlier initiatives, notably an deserted meme coin named ANDY.
ZachXBT substantiated his claims with screenshots, revealing the obvious recycling of property from the defunct ANDY challenge.
Not that folks on this area will care however @GROKERC20 $GROK was created by a scammer.
Identical actual X/Twitter account has been reused for at the very least one different rip-off.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
This revelation triggered a cascade of occasions, inflicting GROK to nosedive from $0.027 to a low of $0.007 inside 5 hours. The group anxiously noticed the drastic decline, and GROK’s worth settled at $0.012 at press time, in keeping with TradingView.
Supply: GROK/USDT, TradingView.
How did Grok’s crew reply?
Responding to the disaster, Grok’s growth crew initiated a daring transfer by sending roughly $1.7 million price of the token to a burn handle. This was proven in an Etherscan transaction highlighted by ZachXBT.
This strategic token burn aimed to scale back the provision and instill confidence amongst shaken buyers. The burn transaction concerned a staggering 90 million GROK tokens, a major effort to salvage the token’s credibility.
On the 14th of November, Grok’s official account on X (previously Twitter) declared that they’d incinerated the whole provide from the deployer handle, amounting to 180 million GROK and valued at round $2 million.
all tokens from the deployer pockets has been 100% burnt.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qLGROK GROK
— GROK (@GROKERC20) November 13, 2023
At its zenith, GROK boasted a peak worth of $0.027. This propelled its market capitalization to almost $200 million. The meme coin’s meteoric rise commenced on the fifth of November, coinciding with Elon Musk’s unveiling of Grok AI, his purported rival to OpenAI’s ChatGPT.
The following week witnessed a staggering surge of 33,650% in GROK’s worth. Meme coin merchants, pushed by the fervor surrounding Musk’s AI enterprise, had fueled this initiative.
Elon Musk’s AI challenge faces turbulence
Although nonetheless in its developmental section, Grok boasts distinctive options that differentiate it from its contemporaries. Notably, it’s touted to be extra environment friendly than ChatGPT. It has an added functionality to entry real-time data from varied sources.
As an in depth language mannequin (LLM), Grok is at present accessible to a choose person group. Plans are in place for a broader public launch within the close to future.
Grok’s versatility additionally permits it to search out purposes throughout varied domains and industries. From aiding with inquiries to offering real-time updates and providing humor, Grok caters to academic, informational, leisure, and buyer help contexts, amongst others.
