In a dramatic turn of events, the Grok cryptocurrency (GROK) has witnessed its market capitalization halve from $160 million to $78 million, following allegations of fraudulent activity. The digital currency, which had been experiencing rapid growth with over 12,000 holders since its launch, saw its price plummet by 90% on the decentralized exchange tracker DEXTools.
The precipitous drop occurred on Monday after ZachXBT, an online entity known for investigating crypto-related scams, made public accusations of scam activities associated with GROK. As a result of these damaging claims, confidence in the cryptocurrency has significantly waned.
Adding to the turmoil, the creators of GROK have renounced their contract, effectively losing any control over the currency's future operations. This act typically signifies a move towards decentralization but can also lead to uncertainty about the direction and governance of a cryptocurrency.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.