GROK, an X AI-inspired token, lost nearly $100 million in capitalization in the past 24 hours as its developer was linked to previously rug-pulled projects. The token is inspired by, but is completely unrelated, to Grok AI, a chatbot service by Elon Musk-owned X that’s currently in beta testing.
Grok prices gained some 13,000% in just nine days after deployment, data shows, beating the rises of recently popular Pepecoin (PEPE) and HarryPotterObamaSonic10Inu (BITCOIN). It reached a $150 million market capitalization on Monday, amassing over 13,000 holders and trading over $25 million in volume on decentralized exchanges.
But the euphoria seemingly hit a snag late Monday. Prominent blockchain sleuth @ZachXBT linked the deployer of GROK tokens to wallets that had previously issued projects that rug pulled – or those that were deployed and promoted in crypto circles before their liquidity was completely drained.
“Not that people in this space will care but $GROK was created by a scammer,” @ZachXBT said. “Same exact X/Twitter account has been reused for at least one other scam.”
Screenshots posted on X by @ZachXBT showed the deployer had previously issued ANDY tokens and changed their usernames multiple times on the messaging application Telegram.
The finding sent GROK prices immediately spiraling. Some large token holders began selling amounts equivalent to $30,000, DEXTools data shows, driving prices down by at least 70%. Selling activity bumped token trading volumes to over $100 million, the data shows.
Same exact X/Twitter account has been reused for at least one other scam.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
You’d expect the project to have died, but it didn’t. GROK community members quickly shoved off @ZachXBT’s findings as ‘FUD’ – an abbreviation of fear, uncertainty, dismissal; a term akin to an untoward attack on any project – and coaxed their online circles to instead buy even more of the tokens.
The developers, meanwhile, burned all of their token supply, valued at over $1.7 million at the time, by sending those holdings to a null address. This incited even more confidence among followers.
1- $Grok launched as 100% community token with no insiders or shillers.
2- The project grew organically, and all exchanges listed it because of the strong volume and strong community.
3- The dev did have a pervious project on the… pic.twitter.com/OZyyMEdg8J
— 𝕽𝖔𝖒𝖊𝖔 🦇🔊 (@RomeoTrades) November 13, 2023
Online sentiment remains shaky, but the community chugs along. For some believers, GROK is possibly the “next shib,” – a reference to Shiba Inu’s (SHIB) momentous rise from obscurity to a $35 billion capitalization between 2020 and 2022.