YEREVAN (CoinChapter.com) — The price of GROK token, which piggybacked off the recent euphoria around Elon Musk’s Grok Ai project, dropped 70% on Nov. 14. The cryptocurrency has, however, stabilized at $0.012 in the Asian-Pacific hours.
GROK Developer is a Scammer — Surprise, Anyone?
On Nov. 13, blockchain detective ZachXBT revealed that the person behind the GROK project is responsible for at least one scam in the past. GROK’s social media accounts were as recycled as last year’s New Year resolutions, previously tied to a defunct memecoin project named ANDY.
Let’s zoom out for a second and look at the comments on the tweet. Many bulldozed ZachXBT for slamming a coin with over $160 million in market cap and causing a price avalanche.
Thanks for nothing, ZachXBT! But wasn’t the Russian roulette a bit obvious?
A Panic Burn Followed the GROK Price Drop
In a valiant effort to save face (and value), the GROK team did what any reasonable memecoin creators would do – they set their tokens on fire (figuratively, of course).
They sent about $1.7 million worth of GROK to a digital burn address, hoping to reduce supply and bring back the lost confidence. It was like throwing a bucket of water on a house fire, but hey, points for trying.
Low Grok Liquidity Should Have Been A Clue
Looking back on the bonfire, there have been telltale signs that all was not right with GROK. While the coin’s market cap surpassed $160 million on Nov. 13, the liquidity was alarmingly low at around $1.86 million.
This wide gap has already sent speculations that the project will end up in a rug-pull. Since this particular token is one of the many GROK coins that were floated, its future remains uncertain. According to the above data, the top four wallets hold more tokens than the total liquidity. Should they decide to dump their holdings, a massive run to the bank will ensue.
Warned CoinChapter on Nov 13.
So, what’s the moral of the story? The GROK flop is a cautionary tale of hype, hope, and the harsh reality of speculative investments. Remember, in the land of crypto, it’s always wise to look before you leap. If it sounds too good to be true, it probably is.
