– The price of a memecoin named after Elon Musk’s Grok AI project has dropped over 70% following claims that its social media account was recycled from a previous scam token.
– Blockchain sleuth ZachXBT shared screenshots showing that the social media accounts and websites associated with the Grok (GROK) token were repurposed from old projects, including an abandoned memecoin called ANDY.
– After ZachXBT’s post, GROK’s value plummeted from its all-time high of $0.027 to as low as $0.007 within five hours, before partially recovering to $0.011.
– In response to the allegations, GROK’s development team burned 90 million GROK tokens, worth approximately $1.7 million, in an effort to reduce supply and restore confidence.
– The GROK token’s official Twitter account claimed that all tokens from the deployer address had been burned, totaling 180 million GROK valued at around $2 million.
– At its peak, GROK had a market capitalization of nearly $200 million, making it one of the largest new memecoins in the current cycle.
– The memecoin was launched on the same day Elon Musk announced Grok AI as a competitor to OpenAI’s ChatGPT, and its value surged by 33,650% in the following week.