The crypto space, like other markets, is highly influenced by hype and stories. With the digital asset market still relatively new and can be confusing to inexperienced users, this makes it even more susceptible to hype and narratives.
That’s because crypto traders constantly try to capitalize on these new trends to profit from substantial price swings. DEXTools, a crypto tracking platform, recently discovered that 460 new crypto coins went live over the weekend after Musk’s launch of Grok.
Grok is a new computer program that uses artificial intelligence (AI) to interact with humans. Even though these new coins have nothing to do with the actual Grok project, their total value has skyrocketed and already surpassed millions of dollars.
This guide explains what Grok is and why so many new coins are being created due to it.
Grok is a unique computer program that mimics human speech by utilizing artificial intelligence. It was created by Elon Musk, the CEO of Tesla, and his recently established firm, xAI. Musk’s AI firm launched Grok on November 5.
But many analysts opined that Grok is Musk’s response to OpenAI’s ChatGPT, which has many people excited about AI’s capabilities this year and many years to come. According to xAI, the new AI can respond to almost any kind of inquiry, including ones that other talking computers cannot answer.
It accomplishes all this with a hint of humor akin to what you might read in a humorous book called “Hitchhiker’s Guide to the Galaxy,” which made xAI even drop a warning to people opposed to jokes. Grok is currently only available for trial by a select few US users through a unique early-access program.
However, premium users of X (formerly Twitter) can use it after its official launch, costing $16 per month.
What Influences Grok Token’s Popularity?
AI has attracted a lot of attention in 2023, as evidenced by the rise in popularity and value of businesses like Anthropic and OpenAI. For example, OpenAI is aiming for a valuation of $90 billion. In May, however, Anthropic was valued at $5 billion.
GROK-related tokens are a relatively new concept. Their advocates undoubtedly want to capitalize on Musk’s prominence while riding the wave of AI’s popularity this year.
Musk has a reputation for influencing crypto prices by discussing them on his social media handles. He achieved this with Dogecoin through his numerous tweets, which saw the memecoin’s value skyrocket to a record high of $0.73 in May 2021.
However, there is one aspect of GROK tokens that is a cause for concern. In contrast to other cryptocurrencies or assets, they truly serve no purpose. Hence, many are wondering what makes them valuable and why they even exist.
Even though they are a new addition to the world of virtual currencies, GROK tokens’ developers hope that the rising interest in AI and Musk’s influence will make them valuable despite their lack of a clear purpose.
Reasons To Be Cautious Of Grok Tokens
It is worth noting that the AI project that inspired the name of the GROK tokens is unrelated to them. They have no particular purpose, so any excitement surrounding them will likely fizzle out fast.
A major red flag for possible scams or dubious projects is that there is little to no effort put into their development, no clear plan for the future, and the developers have remained anonymous. Inspired by Musk’s public statements and messages, many astute developers and traders take advantage of the chance to create and market new tokens.
Musk has stated unequivocally on his X handle that none of his businesses will be involved in developing a crypto token. He made this point clear to quell lingering rumors.
He reaffirmed a few months ago that there would never be an X token, further reiterating his position. According to data from DEXTools, the first GROK token, introduced as an ERC-20 token on the Ethereum blockchain, has seen an increased market capitalization of $7.8 million despite the growing concerns.
Thus, this trend suggests that traders are taking a chance in the short term to make quick profits.
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