Elon Musk's xAI Launches Grok Chatbot, Sparking GROK Token Frenzy – Coinpedia Fintech News
Elon Musk announced in July that his new business, xAI, will create a “maximum truth-seeking AI” to investigate the meaning of life and the universe. The launch of the AI chatbot has finally arrived. The startup behind Grok, which takes inspiration from the Hitchhiker’s Guide to the Galaxy, claims that the app is “intended to answer almost anything and, far harder, even suggest what questions to ask.” Will it outperform Chat GPT 3.5?
The highly antiquated launch and the recent surge in GROK tokens can be traced back to the launch of Grok’s AI chatbot service, introduced by the social application X. Despite not being directly affiliated with the Grok service; these tokens rapidly gained traction among short-term traders in the crypto market.
Crypto Reaction is Hilarious!
Over the weekend, anonymous developers launched nearly 400 different GROK tokens in a few days. These tokens quickly amassed a collective market capitalization of 10 million dollars. The ability for anyone to create tokens on platforms like Ethereum and the presence of decentralized exchanges allowed these tokens to be issued, supplied with liquidity, and traded within moments for a minimal cost.
The ultimate surge in GROK tokens was largely influenced by the launch of Grok’s AI chatbot service. Known for its uncensored and humorous approach, the service attracted a devoted following in a short period. Despite not having a direct connection to this service, GROK tokens gained immense popularity.
Grok: OpenAI’s ChatGPT’s Rival or Yet another Rull Pull Event?
Several of these GROK tokens experienced considerable success. For example, one GROK token on Ethereum achieved a market capitalization of $10 million within a few days of its launch. It garnered thousands of holders and saw substantial trading volumes, resulting in significant unrealized gains for early investors. Another GROK token on the Base network reached a capitalization of $4.32 million with $3.5 million in daily trading volumes.
However, not all GROK token releases have been well-intentioned. Developers behind certain GROK tokens have executed “rug pulls,” a term describing the removal of liquidity from their tokens. This has led to cumulative losses of over $1 million for speculators.
While the event is not new, many opportunistic players have previously created tokens based on various trends, tweets from influential figures, or even jokes from official corporate Twitter accounts. While these tokens often generate initial excitement and profits, they tend to experience a rapid devaluation, with many losing over 99% of their value within weeks as the initial hype diminishes.
Notable, Grok, powered by the Grok-1 model, outperforms its class in math and reasoning. While it falls short of GPT-4, it highlights xAI’s efficient progress. Grok’s upcoming features will include audio and visual capabilities for enhanced real-time interactions and assistance.
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