After the CEO of Tesla and X (formerly Twitter) Elon Musk launched an AI chatbot called Grok, more than 400 cryptocurrencies with the same name have been created, with one specific token seeing its price surge more than 1,000% since launch.
According to data from Dextools there hundreds of tokens named after the AI chatbot service that Elon Musk’s firm launched, with one seeing its market cap surge into the millions and proving especially profitable for its creators.
Creating and trading tokens on Ethereum (or other blockchains) is easy and inexpensive, as smart contracts can be invoked by anyone for a small fee, and decentralized exchanges allow tokens to be supplied with liquidity and exchanged right after they are issued.
Grok, Musk’s chatbot creation, draws inspiration from the renowned sci-fi classic “The Hitchhiker’s Guide to the Galaxy” and is known for its audacious demeanor. Musk, despite his recently voiced apprehensions about AI’s risks, has announced that Grok will be accessible to premium users on the X platform after extensive trials.
Remarkably, Grok can interact with user content on X and is programmed to respond with a touch of sarcasm. Data from Dextools, however, shows that the price of the token inspired after Musk’s chatbot is relatively low as is its liquidity, which suggests the rise was associated with the low level of liquidity.
The token has over 6,000 holders and has seen a total of little over 56,000 transactions since launch to now have a fully diluted market capitalization just above the $20 million mark, according to Etherscan data.
It is important to recognize that Musk has made it clear that none of his entities, including xAI, have plans to issue cryptocurrency tokens.
The crypto space has historically seen individuals taking advantage of trending news, sometimes by creating tokens linked to public figures like Ethereum co-founder Vitalik Buterin, or even as a nod to social media banter, such as jokes from official Twitter accounts like McDonald’s.
Featured image via Unsplash.