Elon Musk’s new AI startup xAI recently unveiled its anticipated chatbot called Grok. The launch has already sent ripples across the crypto industry, with hundreds of fraudulent tokens popping up to exploit the hype.
Keypoints
Elon Musk’s new AI company xAI launched a chatbot called Grok to rival ChatGPT. Its launch led to hundreds of new AI-related tokens being created.
Nearly 400 “GROK” tokens emerged on crypto exchanges, with some surging over 1000% and reaching millions in market value and trading volumes shortly after launching.
However, most GROK tokens were likely rug pulls or scams, with developers suddenly removing liquidity and causing over $1 million in losses.
Grok uses the Grok-1 model and shows strengths in math and reasoning. Future capabilities will include audio and visual features.
Though influential in the crypto space, Musk stated none of his companies will create an official crypto token, so the GROK tokens are unrelated to xAI.
Grok aims to answer questions, make suggestions, and be more humorous and uncensored than other AI chatbots currently available.
Within days of Grok’s release, nearly 400 tokens with “GROK” in their names emerged on decentralized exchanges. Some of these tokens surged over 1000% shortly after launching, reaching millions in supposed market value. However, experts warn that most of these are obvious scam tokens taking advantage of excited investors.
“These GROK tokens have no real utility or validity, even though some have seen incredible short-term rallies,” said crypto analyst Helen Lee. “It’s clear the developers are trying to rug pull and trick investors just looking to quickly profit on Grok’s popularity.”
One Ethereum-based GROK token rallied 1300% but then crashed. Another GROK token briefly reached a market cap of $4.5 million before losses kicked in. Overall, anonymous developers have already siphoned over $1 million from unwitting speculators.
Grok is a chatbot from xAI, Elon Musk’s new artificial intelligence startup. The AI system, currently in beta testing, aims to provide witty and candid answers to questions while also making intelligent suggestions.
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
While Musk is known to move markets with his tweets and ventures, he previously stated none of his companies would issue crypto tokens. The hundreds of GROK tokens flooding exchanges are attempting to mislead investors into thinking an official Grok coin is for sale.
For now, Grok remains in testing and has no need for a dedicated cryptocurrency. The chatbot runs on xAI’s proprietary Grok-1 model and specializes in mathematical reasoning. Moving forward, xAI plans to enhance Grok with audio and visual capabilities to enable more natural conversations.
In the meantime, experts advise investors to avoid the sham GROK tokens proliferating across decentralized exchanges. With no ties to Grok or xAI, these tokens exist only to benefit unscrupulous developers performing pump and dump schemes. The risks of heavy losses are high, even as the hype surrounding Musk’s latest AI project persists.
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