A particular Grok token saw price gains likely due to news around the public release of an AI chatbot backed by Elon Musk and his social network X, formerly Twitter.
The price of GROK, one of several tokens inspired by Musk’s OpenAI rival, soared over 16% in 24 hours. Its daily trading volume was around $20 million.
GROK’s fully diluted market cap stood at $48 million days before the full launch of Grok AI, a chatbot powered by artificial intelligence and said to compete with OpenAI’s chatGPT. It’s important to note that GROK and other similar cryptocurrencies are not affiliated with Musk’s AI venture.
Anonymous and pseudonymous developers spun up a handful of GROK-themed coins when Musk announced his plans on Nov. 4. These coins collectively rallied over 30,000% at one point.
On Nov. 13, GROK’s market cap reached as high as $120 million before falling sharply due to a post from crypto sleuth ZachXBT. The on-chain investigator highlighted links between previous scam projects and this AI token, leading to the supposed “FUD” surrounding the coin and its developer, who is unknown.
The project’s backers and supporters assembled on an X Spaces in a bid to debunk ZachXBT’s assertions, arguing that the crypto Sherlock published incorrect information regarding GROK and its deployer.
Musk said his Grok AI should roll out to all X premium users between Nov. 26 and Dec. 2, 2023.
While generally unrelated to mainstream AI efforts, crypto AI tokens have become a trending narrative for digital asset participants and have attracted over $6 billion per CoinGecko data.
