Elon Musk’s AI chatbot, Grok, inadvertently finds itself at the heart of a crypto controversy, inadvertently boosting a potentially dubious token.
The situation arises amidst a surge in concerns surrounding fraudulent crypto activities, calling into question the credibility of token launchpads like Solana-based Pump.fun, among others.
Crypto Alert: Did Grok AI Accidentally Promote a Suspect Token?
Grok, responding to a user's query, initially suggested "GrokCoin" as the name of a meme coin, followed by sharing a wallet address related to the supposed GrokCoin in a now-deleted post. Grok clarified that GROKCOIN is a meme coin on the Solana blockchain, inspired by xAI’s Grok AI.
According to Grok, "GROKCOIN, mentioned in the post, is a memecoin on the Solana blockchain, with the wallet address 3MadWqcN9cSrULn8ikDnan9mF3znoQmBPXtVy6BfSTDB. It's inspired by xAI’s Grok AI, launched in November 2023, and trades with a current market cap of around $17 million, per CoinMarketCap, but its value is highly volatile."
Subsequently, the token's market cap skyrocketed to $12 million, accompanied by an impressive trading volume of $51.9 million. As of now, GrokCoin boasts a market cap exceeding $25 million. Furthermore, data from GMGN reveals an almost 100,000% spike in the token's value, indicating a likely orchestrated ploy to lure unsuspecting investors.
“Grok nonchalantly introducing a meme coin name, followed by the market pouring millions into it immediately— peak crypto behavior. AI narratives + meme coins indeed serve as an unconventional money printer,” one user noted.
Despite the surge, doubts and suspicions loom large. It appears an individual purposely created the token prior to coaxing Grok to mention it along with the wallet address publicly. This inference gains traction as the initial query that led to Grok's response was swiftly erased, hinting at a deliberate move to manipulate the market.
Notably, the creator of GrokCoin has launched a staggering 470 tokens, as per data from Soul Scanner.
This episode underscores how scammers leverage AI tools to fabricate and endorse deceitful tokens, showcasing the alarming rise of AI-driven crypto scams and market tampering.
In recent events, China unveiled the DeepSeek crypto scam, wherein swindlers utilized AI-generated content to dupe investors. Similarly, in Hong Kong, fraudsters employed deepfake technology to ensnare investors in fraudulent schemes.
In the midst of these developments, a multitude of Grok-themed tokens are emerging on Pump.fun, a Solana-based platform, exacerbating concerns over market manipulation and investor vulnerability.
Against this backdrop, industry experts caution that the current trend may crumble under the weight of escalating scams. BeInCrypto alerts that the meme coin market faces the risk of collapse due to the influx of fraudulent projects.
Regulatory bodies are taking notice of these deceitful tactics. A new bill in New York proposes severe penalties for crypto scammers, with civil fines reaching up to $5 million for illicit activities.
Such initiatives underscore the pressing need to combat fraudulent practices and shield investors from succumbing to AI-driven fraud.