Some tokens with the same name as Musk’s chatbot Grok have seen their prices soar more than 30,000%, although their legitimacy is unclear.
A new, questionable token has emerged in the decentralized finance (defi) market after American billionaire Elon Musk unveiled a new artificial intelligence chatbot he dubbed Grok.
According to DEXTools data, around 394 tokens have GROK in their names to lure unwary investors.
Some tokens exhibit very high levels of daily trading volumes, recording millions of dollars worth of cryptocurrencies.
A token called GrokDogeX has seen a whopping 31,000% price increase in the past 24 hours, even though the token itself was launched on November 5, 2023.
Many, if not all, of the homegrown homonymous tokens that flood the DeFi market ultimately turn out to be scams. They quickly collapse in price, leaving investors with worthless coins.
According to DEXTools, most of the tokens aimed at Grok appeared on the market shortly after Elon Musk announced a new chatbot to rival the likes of ChatGPT. It is still unclear whether the deployment contracts for these tokens contain hidden features that could cost investors millions of dollars.
It’s worth noting that before the launch, Musk stressed to X that “my company will never create crypto tokens.” However, as crypto.news previously pointed out, this statement does not completely eliminate Musk’s interest in cryptocurrencies.
Musk, known for praising the cryptocurrency Dogecoin (DOGE), which started as an internet meme, has a history of stirring the cryptocurrency pot. For example, in 2021, it was reported that it collaborated with DOGE developers to develop an environmentally friendly alternative to Bitcoin (BTC).