Musk's AI Bot Sparks $12M Crypto Surge With Casual Mention

Elon Musk's AI chatbot Grok has become the unwilling centerpiece of a cryptocurrency controversy. The AI system promoted what appears to be a potentially fraudulent token.

Grok responded to a user's leading question by suggesting "GrokCoin" as a meme coin name. It later provided a specific wallet address for the token. "GROKCOIN, mentioned in the post, is a memecoin on the Solana blockchain, with the wallet address 3MadWqcN9cSrULn8ikDnan9mF3znoQmBPXtVy6BfSTDB," Grok stated. The AI added that the coin was "inspired by xAI's Grok AI, launched in November 2023."

The market reaction was immediate and dramatic. The token's market capitalization reportedly surged to $12 million shortly after Grok's mention. Trading volume reached an astonishing $51.9 million.

Data shows the token's value skyrocketed by nearly 100,000%. This extraordinary price action occurred as investors rushed to purchase what many experts suspect is an orchestrated scheme.

"Grok casually dropping a meme coin name, and the market instantly throws millions at it, peak crypto behavior," one user commented on social media. "AI narratives + meme coins are a different kind of money printer no doubt about that."

Evidence suggests potential market manipulation. An individual apparently created similar tokens before prompting Grok to mention the coin publicly. The original question that led to Grok's response was quickly deleted. This sequence of events points to a deliberate effort to manipulate the market.

The incident highlights growing concerns about AI-driven crypto scams. China recently exposed the DeepSeek crypto fraud where scammers used AI-generated materials to deceive investors. In Hong Kong, fraudsters employed deepfake technology to lure victims into similar schemes.

Following Grok's mention, similar themed tokens flooded the Solana-based platform Pump.fun. This proliferation raises additional concerns about market manipulation and potential investor losses.

Experts warn the trend may collapse under increasing fraudulent activity. BeInCrypto reported the meme coin market faces potential crash risks as fraudulent projects saturate the space.

Regulators are responding to these threats. A new bill in New York proposes civil fines up to $5 million for fraudulent crypto activities. These measures underscore the urgency to protect investors from AI-driven fraud in cryptocurrency markets.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.