GROK price spirals 90% on revelations that the Elon Musk-inspired coin could be a scam

Grok, a new cryptocurrency inspired by Elon Musk’s Grok AI is the latest sensation on Crypto X after climbing cloud-high in market capitalization, only to spiral down fast on revelations that it was the handiwork of a scam artist.

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Grok price dwindles 90% amid scam-related FUD

Grok (GROK) price is down 90% on DEXTools, after recording an intra-day high of $0.06766 to $0.01026 in the last 24 hours.

GROK/USD 1-day chart

It comes after revelations by blockchain detective ZachXBT that the coins was created by a scam artist.

With the slump, the project’s market capitalization has fallen to a cliff, losing over 50% from $160 million to $78 million as of the time of writing.

Prior to the bearish revelations, Grok had recorded a stunning performance, garnering more than 12,000 holders despite being barely two weeks old. On liquidity metrics, DEXTools records $1.66 million in accumulation, although its contract has been renounced. The abysmal liquidity means a single large seller could completely collapse the rise.

Contract renouncing means that its “creator will no longer have control over it, meaning no one can mint new GROK tokens, increase taxes, blacklist wallets, or other dangerous contract functions for investors and holders,” DEXTools explains.

Still, following revelations that it was created by a scam artist, investors should stay vigilant.

GROK token, inspired by but unrelated to Elon Musk’s Grok AI chatbot

It's important to clarify that GROK token draws inspiration from an AI service owned by social media platform, X, which is unrelated to Elon Musk's Grok AI chatbot. On X, Grok is an AI chatbot service, unrelated to the GROK tokens, and rolled out only recently, with previews showing the service is “relatively more uncensored” and with humor. This has played a huge role in helping the AI tool gain traction and community support.

The GROK token is the “first of scores of other GROK tokens,” according to a Coindesk report, that developers have created on different blockchains, with most of the other creations either culminating in rug pulls or not being able to gain traction in terms of value post-issuance.