The memecoin named after Elon Musk's artificial intelligence endeavour, Grok, has encountered a significant downturn, plummeting by more than 70%.

The decline followed allegations that the coin's social media accounts has been repurposed from a previous scam token project.

Blockchain investigator ZachXBT's findings indicated that Grok's (GROK) social media accounts have been recycled from old projects, triggering a sharp drop in the coin's value.

The price plunged from $US0.027 to $US0.007, experiencing a slight rebound to $US0.011. To restore confidence in the token, the GROK team reportedly took measures, including sending around $US1.7 million worth of tokens to a burn address to reduce the overall supply.

According to the GROK account, all tokens from the deployer address have been burned, totalling approximately 180 million GROK or an estimated $US2 million.

Despite the setback, GROK achieved a peak market capitalisation of nearly $US200 million at its highest price of $US0.027 on November 13, establishing itself as one of the prominent new memecoins.

Elon Musk recently introduced his new venture, Grok, a chatbot set to compete with ChatGPT and overseen by his AI startup xAI. The Grok coin was launched on November 5, coinciding with Musk's Grok AI announcement.

In just one week, the value of GROK token skyrocketed by an astonishing 33,650% amid the market's FOMO. Its market capitalisation surged to $160 million a mere eight days after its release.

However, the Grok token marked the beginning of numerous GROK tokens created by developers across multiple blockchains. Many of these tokens either initiated rug pulls or failed to gain real value post-issuance.