In a striking display of the crypto market’s responsiveness to tech innovators, more than 400 cryptocurrencies have been named after Elon Musk’s latest venture into artificial intelligence, Grok.
Despite Musk’s explicit statement that his companies would avoid creating a cryptocurrency, his announcement set off a speculative whirlwind.
400 New Cryptos, Inspired by Elon Musk’s Grok
After Elon Musk revealed Grok, a direct challenger to OpenAI’s ChatGPT developed by xAI, the associated token XAI surged by 175%. This price spike exemplifies the sheer market influence that Musk commands.
Indeed, even as he attempts to distance his projects from the volatility of the crypto sphere, his influence is profound.
XAI Price Performance. Source: CoinMarketCap
The subsequent crypto tokens, donning the Grok name, have collectively amassed a market capitalization surpassing $10 million.
These tokens were brought to life on various blockchains and caught the attention of traders looking to capitalize on the hype generated by Musk’s brand and the potential of AI technology. However, the emergence of Grok-themed tokens also brought with it the darker side. At least 10 tokens were scam crypto projects, totaling about $1 million in investor losses.
“Be careful for different scam projects related to [Grok] because it’s actually not related to the actual project. I saw there was there was a lot different scam people basically just trying to make a quick buck off of it, and then, also some projects getting created by the AI too so it’s kind of a mix,” crypto influencer Trevor Max said.
Read more: 15 Most Common Crypto Scams To Look Out For
GROK Price Performance. Source: TradingView
Elon Musk’s relationship with crypto has been a rollercoaster of influence. His commentary and actions have previously propelled the value of tokens like Dogecoin and Shina Inu.
Yet, Musk refrained from encouraging cryptocurrency investment, highlighting the speculative nature of these assets.
“I’m not advising anyone to buy crypto or bet the farm on Dogecoin,” Musk said.
The rapid creation of Grok-named tokens reflects a broader trend in the crypto market, where speculators often leverage trending news to create new tokens. Indeed, developers can quickly mint, list, and trade these tokens on decentralized exchanges, thanks to the accessible nature of blockchain technology.
While these new tokens offer a glimpse into the excitement and creativity within the crypto community, they also underscore the inherent risks within a market that thrives on novelty and the influence of tech celebrities.
Top crypto platforms in the US | November 2023
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