Retail investors were initially captivated by a token called GROK following Elon Musk's revelation of his AI Chatbot named Grok. However, Musk clarified on his X handle, stating, “To be super clear, none of my companies will ever create a crypto token.”
This development was also highlighted by the renowned crypto analyst DogeDesigner, who cautioned retail investors, as reported by CoinGape.
What Happened: After Musk-owned X (formerly Twitter) launched the AI Chatbot Grok over the weekend, around 400 GROK tokens were released into the crypto community by unknown developers, as reported by CoinDesk. This created a combined market cap of millions of dollars, benefitting early buyers on their initial token purchases.
This news comes ahead of Benzinga’s Future Of Digital Assets Event in New York scheduled on Nov.14. Attend and learn more about memecoins and how they lead to a significant movement in the crypto sector. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.
The token inspired by Grok was issued early Saturday on the Ethereum network, and by Monday morning it peaked at a market cap of $10 million. Blockchain data reflects that the token has 4,600 holders and $10 million of tokens were traded for ETH in the last 24 hours.
One Ethereum-based GROK token rallied 1300% but then crashed, according to CoinGape. Meanwhile, another GROK token on the BASE network stood at a $4.32 million market cap, with $3.5 million in 24-hour trading volume.
Developers behind at least 10 different GROK releases removed the liquidity of their tokens, resulting in cumulative losses of more than $1 million for speculators, according to CoinDesk.
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How It Happened: The process goes like this: With the presence of blockchains and Web3, anyone can create a smart contract and issue tokens on Ethereum (or other blockchains) for a few cents. The decentralized exchanges enable tokens to be instantly issued, supplied with liquidity, and traded immediately.
The crypto market has previously witnessed opportunistic players creating tokens on trending topics like Vitalik Buterin’s tweets to jokes from McDonald’s official Twitter accounts. Dogecoin had also started as an internet meme and in 2021 it was rumored that Musk collaborated with DOGE developers for an eco-friendly alternative to Bitcoin, Crypto News reported.
Read More: If You Invested $100 When Elon Musk First Tweeted About Dogecoin, Here's How Much You'd Have Today
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