GrokCoin: Elon Musk's AI Fuels $30 Million Token Raise, Sparks Scam Concerns
Elon Musk's AI chatbot, Grok, has inadvertently found itself at the center of a crypto controversy, promoting a token that many believe could be a scam.
The incident comes amid growing concerns about cryptocurrency fraud, particularly regarding token platforms like Solana-based Pump.fun.
Scam Alert: Did Grok AI Accidentally Pump the Price of GrokCoin?
Grok, after being asked by a user, accidentally suggested "GrokCoin" as the name of a meme coin. Grok then provided a wallet address for the token in a since-deleted post. Grok also confirmed that GrokCoin is a meme coin on the Solana blockchain, inspired by xAI's Grok AI.
"GrokCoin, mentioned in the article, is a meme coin on the Solana blockchain with wallet address 3MadWqcN9cSrULn8ikDnan9mF3znoQmBPXtVy6BfSTDB. The coin, inspired by xAI's AI Grok, launched in November 2023, is currently trading at a market cap of around $20 million, but its value is highly volatile," Grok emphasized.
Immediately, GrokCoin's market cap increased from $12 million to over $30 million, with a trading volume exceeding $60 million. According to GMGN, the value of this token increased by nearly 120,000%, causing investors to rush to buy without knowing whether this was a pre-planned scheme or not.
“A few words from Grok triggered millions of dollars pouring into GrokCoin, a typical manifestation of the meme coin phenomenon in the crypto market,” one user quipped.
GrokCoin Price Performance
According to data from GMGN, the value of GrokCoin has increased dramatically, pushing its market capitalization to over $30 million. However, this sudden increase has raised concerns about an organized scam. Many believe that an individual created the token before Grok accidentally mentioned it, in order to manipulate the market. A clear sign is that the user's post was deleted shortly after, further raising suspicions.
It is worth noting that the founder of GrokCoin has issued over 500 similar tokens, according to data from Soul Scanner, further strengthening the theory that this could be a scam.
Concerns Over AI-Driven Crypto Scams
The incident highlights the risk of AI-powered cryptocurrency scams. This raises concerns about the growing trend of AI-driven cryptocurrency scams, as well as the potential for market manipulation.
China previously exposed the DeepSeek cryptocurrency scam, in which scammers used AI to create content to deceive investors. A similar incident occurred in Hong Kong, where scammers used deepfakes to defraud investors.
Similar Grok-themed tokens are now circulating on Pump.fun, another Solana token platform, adding to fears of market manipulation and potential losses for investors.
How to Deal with Crypto Scams
Concerns about scams have caught the attention of regulators. A new bill is being proposed in New York to impose harsh penalties on cryptocurrency scammers. According to BeInCrypto, the bill proposes civil penalties of up to $5 million for cryptocurrency fraud.
The measures highlight the need to protect investors from fraudulent schemes involving cryptocurrencies and AI, while also requiring greater transparency and safety in the markets.
