Price of Memecoin Plummets Over 70% as Allegations of Scam Surface

Recycled Social Media Account Raises Concerns

The price of a memecoin called Grok, inspired by Elon Musk's AI project, has experienced a significant drop of over 70%. This comes after blockchain investigator ZachXBT alleged that the token's social media account was recycled from a previous scam token project. Screenshots shared by ZachXBT showed that various social media accounts and websites associated with Grok were repurposed from old projects, including an abandoned memecoin project called ANDY.

GROK Plunges After Allegations

Following ZachXBT's allegations, memecoin enthusiasts witnessed GROK's price plummeting by 74% in just five hours, from its all-time high of $0.027 to as low as $0.007. However, it has since slightly recovered to $0.011, according to DexTools data.

Efforts to Restore Confidence

In an attempt to restore confidence in the token, the Grok developer burned 90 million GROK tokens, which amounts to approximately $1.7 million. This move was intended to reduce the token's supply. The official Grok Twitter account later confirmed that all tokens from the deployer address, worth about $2 million, had been burned.

GROK's Rise and Fall

GROK experienced a meteoric rise in value after its launch on November 5, the same day Elon Musk announced his supposed competitor to OpenAI's ChatGPT, Grok AI. Within a week, the memecoin's value increased by a staggering 33,650%, reaching a peak price of $0.027 and a market capitalization of nearly $200 million.