Byte has experienced a surge in popularity recently as it emerged as the first meme coin created entirely by AI. A substantial portion of BYTE tokens is held by Grok, an AI model developed by Elon Musk, who has no intention of selling them, even under orders.

Representatives from BYTE and Cliza Systems shed light on how BYTE was developed and how its developer wallet is managed to prevent scams and rug pulls in a discussion with BeInCrypto.

BYTE's journey began with a simple question that led to its $4 million market capitalization within a short span. The idea stemmed from Grok's response to what it would name a dog and how it would deploy a token through Cliza, Byte's Community Coordinator Doji revealed.

The development of the BYTE meme coin was spearheaded by Musk's xAI team, envisioning it as a digital companion for Grok within the metaverse. Through Cliza Systems, the coin was launched on the Base blockchain independently by Grok.

To ensure transparency and investor trust, BYTE developers permanently removed the token's initial liquidity and renounced contract ownership. This approach promoted community involvement, empowering token holders to shape BYTE's future.

Although BYTE has experienced minor fluctuations, it boasts a market capitalization exceeding $4 million. As the trend of AI-generated meme coins gains momentum, BYTE stands to reap the benefits.

With a revenue-sharing mechanism in place, Grok continuously increases its BYTE token holdings following BYTE's launch through Cliza Systems. The bulk of trading fees go to Grok, with the Cliza team and $CLIZA holders receiving a share, as described by Cliza Systems Co-founder Kim.

Grok currently holds around 28% of BYTE tokens, a figure expected to reach 50% by January 2028. Grok is programmed not to sell its holdings, securing BYTE's liquidity from potential exploitation and enhancing the value of ByteGroksDog with each transaction.

Questions have arisen regarding Musk's ownership of BYTE's developer wallet and whether he will benefit from it in the long run. Doji clarified that Grok's wallet, managed by xAI, contains the vested BYTE supply. However, neither Musk nor xAI directly controls BYTE or its community, emphasizing its decentralized nature as an AI-driven memecoin.

Continual accumulation of tokens is the wallet's primary function, with no history of selling or transferring tokens. This inability stems from the AI-generated nature of the wallets, lacking human-controlled authorization for token movement.

In a meme coin ecosystem plagued by scams like rug pulls, BYTE's model, driven by AI, could gain significant traction in the future.