Elon Musk-Inspired GROK Drops 74% on Scam Claims

Elon Musk-Inspired “GROK” Token Drops 74% on Scam Claims

The memecoin GROK, linked to Elon Musk’s AI project, took a big hit, crashing 74% after onchain analyst ZachXBT called out its social media accounts for being recycled from a previous scam. GROK, which had been on a roll, suddenly saw its price plunge as word got out. The creators tried to save face by burning $1.7 million worth of tokens, but the trust was already shaken. 

This drama unfolded right after GROK’s hype-filled launch. Inspired by Elon Musk’s Grok AI, the GROK token has taken the crypto market by storm, reaching a $200 million market cap in just eight days. Its price has surged by 13,000% within a week, attracting 11,000 holders and seeing $25 million traded in a day. GROK’s sudden rise, now at the center of attention, mirrors the broader crypto frenzy where novel and themed tokens often rapidly gain popularity.

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2023 Crypto Fund Inflows Hit $1B, Boosted by Major Coins

This year has been a bumper year for crypto funds, breaking past $1 billion in total inflows. The latest boost of $293 million in a week has mainly come from Bitcoin and Ethereum-based products, with Bitcoin exchange-traded products (ETPs) leading the pack by attracting $240 million. Ethereum funds also saw a significant uptick, marking their largest inflows since August last year. Solana funds are also making waves, with a notable $12.4 million inflow.  

The total assets under crypto funds’ management have now hit $44.3 billion, a record high since the crypto fund crunch in May 2022. Key regions driving these inflows include Canada, the U.S., Germany, and Switzerland.

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DeFi at Risk in US Unless IRS Changes Course on Tax Rules

The Blockchain Association is stepping up against a potential game-changer in crypto regulation proposed by the IRS. They are raising a red flag over the proposed change in the definition of “broker” in tax rules, arguing that it could really hit the DeFi industry hard in the U.S. They have laid out their concerns in a detailed 33-page document. Their main argument is that DeFi’s essence is about automation and anonymity, so treating DeFi protocols like typical financial brokers just doesn’t fit. The proposal has sparked a lot of conversation, with over 124,000 public comments submitted. 

Things got interesting after a recent IRS hearing where the officials seemed pretty engaged and asked some thoughtful questions. This has brought a cautious sense of optimism to the Blockchain Association and the wider crypto community.

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XRP Traders Lose $7M on False BlackRock ETF Rumors

Recently, XRP traders went through a rollercoaster ride, thanks to a tweet suggesting BlackRock was setting up an XRP ETF. This news shot XRP’s price from 65 to 73 cents super quickly. But here is the twist: the ETF news was fake, a well-crafted imitation, causing prices to drop just as quickly as they rose. 

This sharp turnaround was rough for XRP futures traders, who lost about $7.26 million in 24 hours. This whole drama, which played out mainly on Binance and Bybit, is a classic example of how risky and unpredictable trading in the crypto world can be.

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Other breaking news

• Animoca and Chiliz Team Up to Enhance SportFi
• The Block Cuts SBF Ties, Partners with Foresight Ventures
• Australia Revises Capital Gains Tax Rules for Wrapped Tokens, DeFi
• Reddit’s MOON Token Soars 150% on Revival Hopes
• Crypto Games Shift Chains or Shut Down: Exploring the Reasons

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Wrapping up

That wraps up today’s edition, everyone. We dived into the rise of inflows in crypto funds, showing that investors are warming up to crypto again. Memecoins are grabbing headlines too, with the much-hyped GROK taking a 70% dive. Over in the tax world, the IRS is tweaking rules that might hit crypto holders in the United States. And XRP traders faced a $7 million loss due to misleading ETF rumors. Stick around for more updates!