The meme coin GROK is showing signs of being a potential scam, resulting in a sharp 70% decline in its price.

The value of the meme coin linked to Elon Musk's AI initiative, "GROK," saw a sharp decline of more than 70% after blockchain investigator ZachXBT revealed that the social media accounts of the project had been used in the past for deceptive token schemes, including one named ANDY.

In a span of five hours following ZachXBT's announcement, GROK observed a drastic 74% drop from its record high of US$0.027 to US$0.007. The project's market capitalization also took a steep plunge, plummeting more than 50% from US$160 million to US$78 million.

This abrupt decline raised concerns about the susceptibility of investors to this particular token. In response, the GROK team allegedly transferred tokens valued at about US$1.7 million to a burn address, aiming to diminish the supply and instill confidence in the token.

Prior to the revelation of the fraudulent activity, GROK had undergone rapid expansion, drawing in over 12,000 holders in just a fortnight. DEXTools documented a liquidity accumulation of approximately US$1.66 million.
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