According to CoinDesk, GROK, an AI-inspired token, lost nearly $100 million in market capitalization within 24 hours after its developer was linked to projects that previously failed to gain traction. The token, which is unrelated to Elon Musk-owned X's Grok AI chatbot service, saw its price increase by 13,000% in just nine days after deployment, reaching a market cap of $150 million on Monday. It amassed over 13,000 holders and traded over $25 million in volume on decentralized exchanges.
However, the token's rapid rise hit a snag when prominent blockchain sleuth @ZachXBT linked the deployer of GROK tokens to wallets that had previously issued projects that failed to take off after issuance. This revelation caused GROK prices to plummet, with some large token holders selling amounts equivalent to $30,000, driving prices down by at least 70%. Despite this, GROK community members dismissed @ZachXBT's findings as 'FUD' and encouraged others to buy more tokens.
In response, the developers burned all of their token supply, valued at over $1.7 million at the time, by sending those holdings to a null address. This action instilled more confidence among followers, and some believers now see GROK as potentially the 'next shib,' referring to Shiba Inu's (SHIB) rise from obscurity to a $35 billion market capitalization between 2020 and 2022.
