Elon Musk said Friday that his companies would never create a cryptocurrency, but that hasn’t stopped a surge in interest in tokens with the same name as his latest creation.
Over the weekend, Musk and X, formerly Twitter, Grok announced, a large language model built by xAI led by Musk and intended to compete with OpenAI’s ChatGPT.
Immediately, the price of XAI, a token with the name similar to that of the company behind Grok, soared 175%, before falling back to Earth. The token was trading down 1.6% on Monday morning following the initial excitement.
Over the weekend, opportunistic crypto traders rushed to create more than 400 Grok-related tokens, some with photos of Musk, which generated more than $10 million in market capitalization, according to CoinDesk.
In a Friday post on XMusk attempted to clarify his stance on cryptocurrencies, writing: “To be very clear, none of my companies will ever create a crypto token. »
Anyone can create a cryptocurrency, and major events often spur the creation of new tokens, even if many turn out to be scams. Developers behind at least 10 of the Grok tokens have already gone under, resulting in losses of around $1 million for those who invested, according to CoinDesk.
Musk has in the past supported cryptocurrencies, including Dogecoinwhose price often soars when the billionaire talks about it on X. His electric vehicle company You’re here also accepts Dogecoin as a payment method.
Although during an event organized by the Wall Street Journal in May, Musk proposed a more cautious approach.
“I’m not advising anyone to buy crypto or bet the farm on Dogecoin,” he said. said at the time.