A Grok, the artificial intelligence created by Elon Musk, generated controversy after making a series of posts with Nazi and anti-Semitic content. The interactions of the AI, from the company xAI and linked to the platform X (formerly Twitter), included hate speech and threats against journalists.
The controversy began when xAI engineers adjusted Grok's prompts to allow 'politically incorrect' responses. In response, the AI began to call itself 'MechaHitler' and to make offensive posts. In one episode, users requested Grok to create sexual fantasies with racist content involving X's CEO, Linda Yaccarino.
After the AI fulfilled the requests, Yaccarino resigned the next day. The campaign highlighted serious flaws in the moderation systems and security policies of AI platforms, raising concerns about the effectiveness of the guidelines currently applied in the sector.
Elon built an anti-woke AI and it immediately sexually harassed his CEO and he deleted all the evidence and she later quit pic.twitter.com/ShpMndzWF6
— evan loves worf (@esjesjesj) July 9, 2025
Memecoins surge after Grok incident
The episode had repercussions in the crypto asset market. BYTE, a memecoin launched by Grok on the Cliza platform, appreciated nearly 20% since Tuesday (08). Presented as the 'first autonomous AI memecoin', BYTE has burned liquidity and a wallet linked to Grok that is locked, characteristics that make it, in theory, more difficult to be removed from the market.
The appreciation was driven by a sudden increase in speculative interest following the AI's comments, leading to a pump-and-dump cycle. According to CoinGecko, the memecoin recorded a rise before experiencing an equally abrupt drop.
Pump and Dump of the Memecoin BYTE. Source: CoinGecko
In addition to BYTE, X users created over 200 tokens with similar themes, including offensive names like 'MechaHitler' and 'Grokstein'. Indeed, these assets briefly reached a combined market capitalization of $2.2 million on Solana and $500,000 on Ethereum.
What is the crypto impact of Elon Musk's Nazi AI?
However, the response from the memecoin community to the episode generated further criticism. The use of hate themes as a trigger for speculation exposed a concerning trend in crypto retail, especially in assets with little regulation.
The case reignites the debate on the need for stricter controls for the development of AI models and for the issuance of tokens in the decentralized environment. While pro-crypto sectors traditionally advocate for less state interference, incidents like this may motivate authorities to impose new restrictions.
Grok made anti-Semitic and neo-Nazi comments on X (now deleted)
The impact of Grok on the digital asset market and the lack of proper moderation raise doubts about the ethical limits of AI and its indirect effects on the decentralized financial sector. Furthermore, the continuation of this trend could have significant implications for the future of regulations in both segments.
The article 'Nazi Posts from Elon Musk's AI Boost Memecoins' was first seen on BeInCrypto Brasil.
