Elon Musk. Source: a video screenshot, Elon Musk Zone / YouTube
Several GROK tokens have been released days after Elon Musk announced GROK, an AI chatbot touted as a major rival to ChatGPT.
Over the weekend, nearly 400 tokens have been released to the ecosystem by new developers inspired by GROK with some having hopes to turn into the new Dogecoin (DOGE) or Shiba Inu.
Announcing Grok!
Grok is an AI modeled after the Hitchhiker’s Guide to the Galaxy, so intended to answer almost anything and, far harder, even suggest what questions to ask!
Grok is designed to answer questions with a bit of wit and has a rebellious streak, so please don’t use…
— xAI (@xai) November 5, 2023
At the moment, the total market capitalization of these GROK tokens has hit tens of millions as low-trading investors look to make a short-term profit from their initial purchase.
Blockchains and web3 now make it easier for developers to issue tokens on multiple networks, listing and trading them on different decentralized exchanges before being accepted by their centralized counterparts.
Over the years, the crypto market has recorded a rise in multiple memecoins, a section of altcoin built around certain events or a curated community often as a joke with no significant utility.
However, memecoins became popular with more utilities added following the sharp rise of Dogecoin and Shiba Inu earning the term a billion dollars joke.
Unknown tokens rally over 1000%
Several GROK-themed tokes have made an uphill run within days recording over 1000% gains as the hype continues as AI tokens garner popularity.
Recent data from Dextools show a particular token making a 1,300% spike since its launch with a total trading volume of $7.32 million despite a slight decrease in the last couple of hours.
Similarly, another token has made a huge leap of 231% in the last 24 hours with a market capitalization of $4.85 million and a liquidity of $679,000.
A particular token that used the name of GROK and Elon Musk-backed Dogecoin skyrocketed over 30,400% from Nov 5. It is public knowledge that the company has not released any affiliated crypto token with Musk stating that none of his companies will release a crypto token.
While some developers and early investors of these tokens now sit on over $200,000 from their initial investment, others have recorded a loss as about ten memecoins have ended in a rug pull.
Elon Musk’s influence on the market
In the last few years, Elon Musk and a few other billionaires have shifted the direction of investors in the market over certain announcements. In 2021, Tesla’s decision to stop accepting Bitcoin (BTC) sent the market downhill after the company cited environmental factors.
The events sparked controversies opening talks about the sector’s energy usage with developers and executives proffering solutions.
Musk also influenced the market in the build-up to a 2021 appearance On Saturday Night Live sending the price of dogecoin over the roof. The billionaire has been described as pro-Dogecoin leading to traction for the asset.
Last year Twitter purchase saw similar growth of DOGE as many hoped for a potential Twitter integration ushering in more adoption.
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