Elon Musk’s Memecoin, Grok, has lost more than 70% of its value due to alleged fraud, as pointed out by blockchain researcher, ZachXBT. The social media account associated with the token was moved from abandoned projects, resulting in a 74% drop in its value.

• Memecoin Grok drops 74% as a result of creator fraud
• Memecoin fell from a record high of $0.027 to$0.007.
• At its peak on November 13, GROK had a market valuation of about $200 million, making it one of the most prominent new memecoins in the current cycle.

The memecoin named Grok, which was so named after Elon Musk’s artificial intelligence project, lost more than 70% of its value after reports by blockchain researcher ZachXBT. He claimed that an account associated with the Grok (GROK) token on social media was taken over as part of a fraudulent token project.

In a post on his X platform (formerly Twitter) on November 13, ZachXBT published screenshots showing how various websites and social media accounts associated with Grok had been moved from abandoned projects, including the abandoned ANDY memecoin project, whose value has fallen significantly from its record high.

Fans of memecoin noted that in the five hours after ZachXBT published the article, the GROK price dropped 74%, from a record high of $0.027 to a low of $0.007.

Currently, data from DexTools shows that the price has fallen to $0.011.

In a later post, ZachXBT cited a transaction with Etherscan showing that GROK management had moved a token with an estimated value of $1.7 million to a burn address in an attempt to reduce supply and restore confidence in the token. The X account associated with the GROK token announced in a November 14 post that the supply of tokens from the deployment address had been completely cleared by the development team.

At the climax on November 13, when the token reached $0.027, GROK was valued at around $200 million, making it one of the most recognizable new memecoins in the current cycle.

Memecoin was launched on November 5, the same day that Grok AI was unveiled by Elon Musk as an alleged competitor to ChatGPT OpenAI.

What’s more, as a result of the feverishness of Memecoin traders who began to capitalize on the hysteria, its value rose by 33,650% the following week.