Recognized 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 stories 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 brand for the token, based on CoinMarketCap, seems questioningly like the brand new X brand. Nevertheless, that’s the place the similarity ends, because the token is totally unrelated to the Musk-led firm.

Final week, CryptoSlate reported that Musk mentioned none of his firms, together with xAI, Tesla, and social media platform X, would ever difficulty 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 undertaking for at the very least one different rip-off. He mentioned:

“Not that individuals on this area will care however @GROKERC20 $GROK was created by a scammer. Identical actual 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 now 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 big enhance in its buying and selling volumes, based on knowledge from Coingecko.

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

The undertaking 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 undertaking. No tokens are held within the deployer pockets anymore,” based on a put up 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 group. Crypto merchants ought to prioritize thorough analysis right into a undertaking earlier than investing.