Benzinga - The GROK token, an AI-inspired digital asset, witnessed a dramatic loss of nearly $100 million in market value within a 24-hour period.
This decline came amid revelations linking its developer to past unsuccessful projects, capturing the attention of cryptocurrency market analysts.
This dramatic price swing is reflective of the quickly evolving crypto landscape, which is a focal point of Benzinga's Future of Digital Assets event in New York City on Tuesday. A livestream of the conference is available here.
It's important to note that GROK is distinct and not associated with Grok AI, a chatbot service under development by Elon Musk's company, X.
GROK's value had previously skyrocketed, achieving an extraordinary 13,000% increase in just nine days post-launch, surpassing the growth of other trending cryptocurrencies like Pepecoin (CRYPTO: PEPE) and HarryPotterObamaSonic10Inu, CoinDesk reported.
By Monday, its market cap had soared to $150 million, with over 13,000 investors and more than $25 million in trading volume on decentralized trading platforms.
However, the token's rapid ascent was abruptly halted late Monday.
Blockchain investigator @ZachXBT exposed the GROK token's deployer as being connected to wallets linked to other failed crypto projects.
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“Not that people in this space will care but $GROK was created by a scammer,” @ZachXBT stated.
“Same exact X/Twitter account has been reused for at least one other scam.”
This assertion was supported by screenshots shared by @ZachXBT on X, showing the deployer's history of issuing ANDY tokens and repeatedly changing usernames on Telegram.
Following these disclosures, GROK's value plunged precipitously. Holders began offloading tokens, some in amounts of up to $30,000, as per DEXTools data.
This sell-off led to a drastic price drop of at least 70% and pushed trading volumes above $100 million.
Contrary to expectations, the GROK project did not collapse.
The GROK community dismissed @ZachXBT’s findings as mere 'FUD' (fear, uncertainty, dismissal) and encouraged further investment in the tokens.
In a bold move, the developers eradicated their entire token supply, valued at over $1.7 million, by transferring it to a dead address, bolstering confidence among supporters.
Despite the unstable online sentiment, the GROK community remains steadfast.
Some enthusiasts see GROK as potentially emulating the meteoric rise of Shiba Inu, which went from being relatively unknown to achieving a $35 billion market cap between 2020 and 2022.
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