The value of the Grok memecoin, inspired by Elon Musk’s AI project, took a nosedive, dropping over 70% following allegations that its social media account was recycled from a previous scam token project. Blockchain investigator ZachXBT raised concerns in a recent X (formerly Twitter) post, sharing screenshots that indicated the Grok (GROK) token’s online presence had been repurposed from abandoned projects, including the ANDY memecoin, which experienced a significant decline from its peak.
In the aftermath of ZachXBT’s revelations, GROK witnessed a rapid decline, plunging 74% from its all-time high of $0.027 to as low as $0.007 within five hours. The token’s price has since recovered to $0.011, according to DexTools data.
Responding to the turmoil, ZachXBT highlighted an Etherscan transaction revealing that GROK’s team burned approximately $1.7 million worth of the token to a designated address in an effort to reduce supply and rebuild investor confidence.
The GROK token’s official account on X claimed on November 14 that the development team had executed a burn of all tokens from the deployer address, totaling 180 million GROK, valued at around $2 million based on current prices.
At its peak on November 13, with a price of $0.027, GROK held a market capitalization nearing $200 million, solidifying its position as one of the significant new memecoins in the current market cycle.
Launched on November 5, the same day Elon Musk introduced Grok AI as a competitor to OpenAI’s ChatGPT, the memecoin experienced a meteoric rise, surging by 33,650% within the following week as memecoin enthusiasts sought to capitalize on the hype. However, the recent controversy and price plunge have raised questions about the sustainability of GROK’s momentum.