Known scammer linked to memecoin named after Musk’s Grok chatbot, token dumps

GROK, a suspicious AI chatbot-inspired memecoin, has seen its worth plummet by greater than 50% after experiences emerged that its developer was linked to a previous crypto rip-off.

The memecoin is called after Elon Musk’s Grok xAI chatbot service, which was launched earlier within the month. The emblem for the token, in line with CoinMarketCap, seems questioningly like the brand new X brand. Nevertheless, that’s the place the similarity ends, because the token is completely unrelated to the Musk-led firm.

Final week, CryptoSlate reported that Musk stated none of his corporations, together with xAI, Tesla, and social media platform X, would ever concern a cryptocurrency token.

ZachXBT reveals GROK developer’s shady previous.

On-chain sleuth ZachXBT revealed that GROK’s developer is a scammer who has reused the precise X/Twitter account of the challenge for at the very least one different rip-off. He stated:

“Not that individuals on this area will care however @GROKERC20 $GROK was created by a scammer. Identical precise X/Twitter account has been reused for at the very least one different rip-off.”

Screenshots shared by ZachXBT displayed the developer’s earlier issuance of an ANDY token, which not exists, and highlighted a number of modifications within the developer’s Telegram deal with.

After ZachXBT’s disclosure, the token skilled a considerable drop in worth amid a major improve in its buying and selling volumes, in line with knowledge from Coingecko.

For context, crypto analyst Lookonchain reported that an deal with bought 27.32 million GROK for 212 ETH two hours earlier than ZachXBT made his reveal. Shortly afterward, the identical deal with purchased again 16.3 million GROK at a decreased value of 80 ETH, valued at $164,000.

The challenge has since tried to regain public belief, with the developer burning 180 million tokens price greater than $2 million. “$GROK will proceed ahead as a 100% community-owned challenge. No tokens are held within the deployer pockets anymore,” in line with a submit on its official X deal with.

In the meantime, this incident highlights the techniques of malicious actors who goal compelling narratives to draw consideration inside the crypto neighborhood. Crypto merchants ought to prioritize thorough analysis right into a challenge earlier than investing.