Category: News

The crypto industry is witnessing a resurgence in public market interest, fueled by President Donald Trump’s administration’s pro-crypto stance.

Asset management firm Ark Invest foresaw this prospective wave of interest months ago, indicating that Trump’s stance on crypto would provide a runway for multiple Initial Public Offerings (IPOs).

Gemini Moves Closer to Public Debut

Gemini exchange, the crypto exchange founded by billionaire twins Cameron and Tyler Winklevoss, reportedly filed for an IPO confidentially and could go public as soon as this year.

Bloomberg, citing sources close to the matter, said the exchange was working with financial heavyweights Goldman Sachs and Citigroup. This move came after the US SEC (Securities and Exchange Commission) closed its investigation into Gemini without pursuing enforcement action. As BeInCrypto reported, this cleared a major regulatory hurdle for the firm.

Gemini’s decision to go public coincides with its co-founders’ increasing political engagement. Notably, the Winklevoss twins were among the attendees at Trump’s White House Crypto Summit, reflecting their growing influence in the crypto policy space.

The brothers were also notable financial supporters of Donald Trump’s presidential campaign. They donated Bitcoin beyond the legal limit, resulting in a partial refund.

Trump’s administration has been vocal in supporting cryptocurrency, following through with previous commitments for a strategic crypto reserve. Gemini is poised to take advantage of this favorable climate.

Kraken Plans 2026 IPO Amid Regulatory Shift

Following Gemini’s lead, the Kraken exchange also positions itself for a public offering, reportedly slated for early 2026. The interest comes amid what it sees as a friendlier regulatory environment under President Trump.

The exchange recently disclosed financial highlights for 2024, revealing revenue of $1.5 billion and adjusted earnings of $380 million. Like Gemini, the US SEC also dropped its lawsuit against Kraken, reversing its previous stance and signaling a broader shift in crypto enforcement.

Like Gemini, the Biden administration stifled Kraken’s IPO ambitions due to regulatory pressures, including SEC enforcement actions. However, with both cases now settled, the companies see an opportunity to enter the public markets.

Kraken Co-CEO Arjun Sethi also attended the White House Crypto Summit, signaling the company’s alignment with the administration’s crypto-friendly policies.

Based on these, therefore, the IPO climate for crypto firms appears increasingly favorable. Cathie Wood’s Ark Invest had predicted that firms like Kraken and stablecoin issuer Circle would pursue IPOs under a Trump administration, a forecast that now seems to be materializing.

Meanwhile, Kraken and Gemini are not alone in this trend. BitGo, a major digital asset custodian, is also reportedly exploring a public listing in the second half of 2025.

The post Crypto IPO Wave: Gemini, Kraken, and BitGo Target Public Listings appeared first on BeInCrypto.

Solana (SOL) has been struggling below $150 since March 3, with its technical indicators still pointing to a bearish trend. The number of Solana whales has declined in recent days, suggesting some large holders may be reducing exposure.

Meanwhile, Solana’s total value locked (TVL) remains below $10 billion, highlighting weakening engagement in its DeFi ecosystem. For SOL to regain bullish momentum, it would need renewed whale accumulation, a recovery in TVL, and a breakout above key resistance levels.

Solana TVL Stuck Below $10 Billion Since February 22

Solana’s total value locked (TVL) has been steadily declining. It is currently at $8.87 billion, and the last time it surpassed $10 billion was February 22.

TVL represents the total amount of assets deposited in a blockchain’s decentralized finance (DeFi) protocols, serving as a key indicator of network activity and investor confidence.

A higher TVL suggests strong ecosystem engagement, while a declining TVL can indicate reduced liquidity and fading interest.

With Solana’s TVL continuing to drop, it raises concerns about potential weakening demand for its DeFi ecosystem, which could impact SOL’s price, at a moment when the chain and some of its major players have been suffering criticism from the community.

A declining TVL often reflects lower capital inflows and reduced activity in lending, staking, and trading protocols, limiting upward price momentum.

For Solana’s bullish case to strengthen, its TVL would need to stabilize and recover, signaling renewed investor confidence and increased network utility.

Whales Stopped Accumulating SOL

The number of Solana whales – addresses holding at least 10,000 SOL – grew between February 28 and March 3, rising from 4,953 to 5,053. However, since then, the number has steadily declined, now sitting at 5,023.

Tracking whale activity is crucial because large holders can influence market trends. Accumulation often signals confidence in price appreciation, and distribution often indicates potential selling pressure.

A sustained increase in whale numbers typically suggests strong demand, while a decline can hint at weakening sentiment.

With the recent drop in Solana whale addresses, there are concerns that some large holders may be reducing exposure, which could create selling pressure on SOL.

If this trend continues, it could limit upward momentum and lead to price consolidation or declines.

However, if whales resume accumulation, it would indicate renewed confidence in Solana’s long-term prospects, potentially supporting a stronger price recovery.

Solana Still Struggles to Breach $150

Solana’s EMA lines indicate that the current setup remains bearish, with short-term averages still positioned below long-term ones.

This alignment suggests that downward pressure persists, limiting immediate upside potential.

However, if the trend reverses and buying momentum strengthens, SOL could climb toward $160.7, and a breakout above this level could push it further to test the $180 resistance.

On the downside, if bearish momentum intensifies, Solana price could retest support at $130.

A breakdown below this level could drive the price lower, potentially testing $125.

The post Solana (SOL) Struggles Below $150 as Whale Accumulation Slows appeared first on BeInCrypto.

Ethereum (ETH) remains under pressure, struggling to break above $2,300. Its technical indicators still point to a downtrend. The BBTrend indicator is improving but remains negative, showing that bullish momentum hasn’t fully developed.

At the same time, the number of Ethereum whales has increased slightly, possibly due to the White House Crypto Summit, as investors anticipate regulatory shifts or the inclusion of ETH in the US strategic crypto reserve. For ETH to turn bullish, it needs to break key resistance levels and sustain buying pressure.

BBTrend Shows the Uptrend Isn’t Here Yet

Ethereum’s BBTrend indicator has climbed to -2.6, improving from -5.12 just a day ago. BBTrend, short for Bollinger Band Trend, is a technical indicator that helps identify price trends and momentum by measuring price deviations from a moving average.

When the BBTrend is deeply negative, it suggests strong bearish momentum, while a positive reading indicates bullish strength.

For Ethereum’s bullish uptrend to gain traction, BBTrend needs to cross above 0 and break higher levels. Two days ago, it briefly turned positive but only reached 1.98 before reversing lower, signaling weak buying pressure.

If BBTrend can push beyond its previous high and sustain positive levels, it would confirm stronger momentum, increasing the chances of Ethereum’s price maintaining a bullish trend.

Whales Accumulated ETH, But The Overall Trend Is Still Down

The number of Ethereum whales – addresses holding at least 1,000 ETH – has risen slightly to 5,768, up from 5,762 on March 5. However, the broader trend remains downward, as the count was 5,828 on February 22.

Tracking these large holders is crucial because whale activity often signals shifts in market sentiment, with accumulation suggesting confidence in price appreciation and distribution indicating potential selling pressure.

This recent uptick in whale numbers could be linked to the White House Crypto Summit, as major investors may be positioning themselves ahead of potential regulatory developments and the inclusion of ETH in the US strategic crypto reserve.

If this increase continues, it could indicate renewed confidence in Ethereum’s long-term outlook. However, for a stronger bullish case, a sustained rise in whale accumulation would be needed, reversing the recent downtrend.

Will the White House Crypto Summit Benefit Ethereum?

Ethereum has struggled to break above $2,300 in recent days. Its EMA lines still signal a downtrend as short-term averages remain below long-term ones.

If selling pressure increases, Ethereum price could test support at $2,077, and a breakdown below this level might push it as low as $1,996, reinforcing the bearish outlook.

However, if Ethereum reverses its trend, it could challenge resistance at $2,550 and potentially climb toward $2,855.

A strong breakout above these levels could set the stage for ETH to reclaim $3,000, a level it hasn’t reached since February 1, 2025, signaling renewed bullish momentum.

The post Ethereum (ETH) Struggles Below $2,300 as Users Await the Crypto Summit appeared first on BeInCrypto.

The founder of Yescoin, a tap-to-earn game on Telegram, has apparently been arrested by Shanghai law enforcement. The project still hasn’t launched a token, citing delays due to repeated cyberattacks, and the community is growing restless.

Yescoin’s statement assured users that operations would continue as normal, but it gave very few details about the dispute or criminal charges. Hopefully, everyone involved is acting in good faith, and its token launch will happen on March 31.

Yescoin Founder Arrested Over Dispute

Yescoin, a popular Telegram-based tap-to-earn game, is facing a difficult episode. Since its launch last year, it’s been a trendy platform, onboarding a significant amount of users to The Open Network.

Today, however, Yescoin has encountered legal trouble, as its pseudonymous founder, Zoroo, was arrested by Shanghai law enforcement:

“We regret to inform you that Zoroo, the founder of Yescoin, has been taken away from Hangzhou by Shanghai police due to a dispute with his business partner, OldWang. What began as a business disagreement between partners has now escalated into a criminal case. We would like to assure everyone that Yescoin continues to operate normally,” the firm claimed.

Other than this statement, very few details about the arrest have come to light. Shanghai is nearly 200 kilometers away from Hangzhou and is in a totally different administrative province, so it’s somewhat surprising that the city’s police arrested Yescoin’s founder.

So far, the community doesn’t have any idea what the criminal charges are about.

Yescoin launched in mid-2024 when the tap-to-earn hype was at its peak. The game has over 4 million followers on X (formerly Twitter) and nearly 3 million subscribers on Telegram.

However, unlike Hamster Kombat and other Telegram mini-games, Yescoin has yet to have its token generation event (TGE). The project cited repeated cyberattacks as the reason for the launch delays but maintains that the token will go live on March 31.

On Yescoin’s initial announcement and other social media posts, users professed skepticism about the alleged arrest. Some fans apparently believe that this incident is an excuse to perpetually delay the launch date or is otherwise somehow fabricated.

In other words, this arrest announcement has riled up the Yescoin community. If further delays happen, it could seriously damage the project’s credibility.

The post Yescoin Founder Arrested by Police Amid Repeated Delays in Token Launch appeared first on BeInCrypto.

Pi Network (PI) has been consolidating after hitting new highs in late February, with technical indicators showing mixed signals. The DMI chart suggests that sellers are attempting to maintain control, as the +DI has dropped while the -DI is rising, signaling increasing bearish momentum.

Meanwhile, the RSI remains neutral, fluctuating between 45 and 55, indicating a lack of strong directional movement. If a strong uptrend emerges, PI could break above $2 and potentially test $3, but downside risks remain, especially with the upcoming unlock of 188 million tokens this month.

Pi Network DMI Shows Sellers Are Trying To Keep Control

Pi Network’s DMI chart shows that its ADX has dropped to 11.5, down from 17.7 the previous day.

The Average Directional Index (ADX) measures trend strength on a scale from 0 to 100, with values below 20 indicating a weak trend and readings above 25 suggesting a strong trend.

A declining ADX suggests that the current trend, whether bullish or bearish, is losing momentum and is less likely to continue in the short term.

At the same time, PI +DI has fallen to 19.3 from 24.5, while -DI has risen to 20.1 from 16.1. This shift indicates that bearish momentum is increasing as selling pressure overtakes buying pressure.

If this trend continues, PI could struggle to gain upside momentum and may face further price weakness.

For a bullish reversal, +DI would need to reclaim dominance over -DI alongside an ADX increase, confirming a stronger trend direction.

PI RSI Has Been Neutral For 8 Days

Pi Network’s RSI is currently at 46.9, maintaining a neutral stance since February 27 and fluctuating between 45 and 55 for the past three days.

The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of price movements on a scale from 0 to 100.

Readings above 70 indicate overbought conditions, suggesting a potential pullback, while readings below 30 signal oversold conditions, hinting at a possible rebound. A neutral RSI between 45 and 55 typically reflects a lack of strong momentum in either direction.

With PI RSI sitting at 46.9, the market appears indecisive, lacking clear bullish or bearish momentum. This suggests that Pi Network’s price may remain range-bound unless a significant shift in buying or selling pressure occurs.

For a stronger bullish outlook, the RSI would need to break above 55, signaling increasing buying interest, while a drop below 45 could indicate growing bearish momentum, potentially leading to further price declines.

The coin recently surpassed 4 million followers on X, however, Binance listing remains elusive, which could contribute to more selling pressure.

Pi Network Could Rise Above $3 If A Strong Uptrend Emerges

Pi Network has been in a consolidation phase over the past few days after reaching new highs at the end of February.

Consolidation periods often indicate a temporary pause in price movement as traders assess the next direction, with the potential for either a continuation of the previous trend or a reversal.

If buying pressure returns and Pi Network resumes its uptrend, it could first test resistance around $2. A breakout above this level, combined with strong momentum, could push Pi toward $3 and even higher, marking new all-time highs.

However, if the uptrend fails to materialize and selling pressure increases, PI price could enter a corrective phase. In this scenario, the price could decline toward $1.51. Its next price movements could be driven by its 188 million token unlock, which will take place this month.

The post Pi Network (PI) Breakout Above $2 in Jeopardy as Selling Pressure Increases appeared first on BeInCrypto.

Arkham Intelligence detected a massive Bitcoin transaction from Nucleus Marketplace, a dark web drug market that has been totally inactive for nine years. Nucleus moved $77.5 million to three wallets, leaving $365 million behind.

So-called “ancient” Bitcoin whales pop up in the space periodically, but an extant darknet vendor is still quite rare. Nucleus’ assets have appreciated in value astronomically, but it will be very difficult to convert this BTC into fiat currency.

Dark Web Bitcoin Whale Wakes Up

If there’s one constant in the crypto space and finance more broadly, it’s that money never sleeps. Earlier today, on-chain analysis firm Arkham Intelligence discovered rapid action from a long-dormant source.

Nucleus Marketplace, a darknet market with zero activity in the last nine years, woke up to move over $77.5 million worth of Bitcoin.

“Nucleus Marketplace was a darknet drug market, and it was believed that the founder had either been apprehended by law enforcement or had exit-scammed when the market went offline in 2016. The BTC held in their wallets has not been moved until today,” Arkham claimed.

This defunct darknet market didn’t immediately move all its Bitcoin, and Nucleus still retains about $365 million in BTC. The price of Bitcoin has shot up astronomically since the company’s heyday; at no point in 2016 did BTC cross the $1,000 price point.

Whoever controls this wallet is acting somewhat conservatively, moving these assets into three separate wallets.

Although the dark web angle may be particularly eye-catching, Bitcoin moves from decade-old wallets surprisingly often. These ancient whales can come from several backgrounds, like early crypto miners or unlaundered stolen assets.

Darknet market transactions are somewhat less common, although a few remain at large despite major legal crackdowns.

As novel as this darknet wallet may be in 2025, it doesn’t seem too likely to have much of an impact on Bitcoin. At the moment, it’s impossible to tell who is controlling Nucleus’ wallet, be it an original operator, associate, or hacker.

Regardless of who controls the wallet, it would be very difficult for anyone to convert this BTC into fiat without notice. These wallets are constantly monitored, and any suspicious activity could trigger community actions.

The post Ancient Dark Web Drug Market Moves Bitcoin Worth $77.5 Million appeared first on BeInCrypto.

Canary Capital, an asset management firm, has registered a statutory trust for a Sui (SUI) exchange-traded fund (ETF) in Delaware. 

The filing, submitted to the Delaware Division of Corporations on March 6, hints at the firm’s intention to launch an SUI ETF. 

Canary Capital Takes First Step Towards SUI ETF

The registration is the first step before submitting an S-1 form to the US Securities and Exchange Commission (SEC). Additionally, the firm will need to submit a 19b-4 filing to the SEC through the exchange where the ETF will be listed. 

Notably, Canary Capital is the first firm to pursue a SUI ETF. Yet, its ambitions extend beyond SUI. 

The asset manager recently filed an S-1 registration statement for an Axelar (AXL) ETF. In addition, it is exploring funds tracking Litecoin (LTC), XRP (XRP), Solana (SOL), and Hedera (HBAR).

Amidst this, a Sui Network ambassador outlined the potential market impact of a SUI ETF, drawing comparisons to the success of Bitcoin (BTC) and Ethereum (ETH) ETFs. According to the ambassador, a SUI ETF could bring similar benefits.

“Even a slice of the interest that BTC/ETH ETFs saw could significantly boost Sui Network liquidity and market cap,” the post read.

He explained that SUI ETF could boost liquidity by offering a new trading platform for both crypto and traditional investors. Moreover, by holding actual SUI tokens, the ETF could reduce the circulating supply, potentially driving up the price.

The increase in liquidity and price would boost ecosystem growth, making it attractive for developers and institutional investors looking to capitalize on this momentum.

“Bitcoin and Ethereum are now “established.” A newer network like Sui offers higher risk but possibly higher reward, akin to investing in an emerging tech stock,” he wrote.

Nonetheless, the ambassador noted that institutions may be cautious with an SUI ETF. He cited volatility, liquidity, and regulatory uncertainty as potential concerns. 

Furthermore, he claimed that regulatory approval may be difficult, as the SEC has scrutinized many altcoins as potential securities. Thus, he believes SUI could face the same fate, requiring market surveillance and clarity on its status. However, he acknowledged that these regulatory procedures could become more streamlined with President Trump now in office.

Interestingly enough, the filing comes just a day after President Trump-backed World Liberty Financial announced a partnership with the Sui blockchain. The partnership will focus on product development, with WLFI including the altcoin in its Macro Strategy reserve.

The post Canary Capital Sets SUI ETF in Motion with Delaware Filing appeared first on BeInCrypto.

Binance’s founder and former CEO, Changpeng Zhao (CZ), has sparked a fresh debate in the crypto community. The crypto executive questioned whether AI-focused blockchain projects should be built on Layer 1 (L1) or Layer 2 (L2) networks.

The broader discussion aligns with industry trends, where AI and blockchain convergence is becoming a focal point for developers and investors alike.

Where Should AI Live? CZ Fuels L1 vs. L2 Discussion

In a recent post on X (Twitter), CZ highlighted that the core purpose of such projects is not to develop a superior blockchain. Instead, it is to use blockchain technology to support AI economics.

He noted that while L1 provides greater sovereignty and decentralization, it also demands more effort in maintaining nodes and validators. In contrast, L2 networks offer convenience by leveraging existing ecosystems like Ethereum’s decentralized exchanges (DEXs), perpetual contracts, and tools without significant value leakage to the base layer.

“L1 vs L2…Does it matter if a new AI project is an L1 or an L2?… Is L1 cooler than L2 or the reverse? Old topic, but wondering if sentiment has changed or not,” CZ posed, welcoming conversation.

Crypto analyst Hitesh Malviya argues that L1 blockchain is the superior choice. The analyst advocates this network for projects seeking to establish their own consensus mechanisms, optimize performance, and reduce validator costs.

However, he also warns that despite extensive fundraising and user acquisition efforts, many L1 projects still experience retention drops of 70-90% after token generation events (TGE).

“…even if you retain users, you would only see one category or niche capturing the maximum traction onchain. So if the destination is already known—retention drop, higher user acquisition costs, and niche-specific demand capture—then why not build an app chain using an L2 stack,” Hitesh suggested.

Given these challenges, he suggests that building an AI-focused blockchain as an L2 app chain is a more practical approach. This would allow for faster development, marketing, and scalability.

Meanwhile, Walter from the BNB Chain Business Development team supports L2. He emphasized its accessibility to existing tools and infrastructure. His comment also hints at speculation regarding CZ’s possible attendance at an upcoming Crypto Summit at the White House.

AI & Blockchain: The Layer 1, Layer 2, and Layer 3 Debate

Investor and blockchain advisor Anndy Lian adds another dimension to the debate. In a subsequent comment on X, he argued that AI is most effectively deployed at Layer-3 (L3). He explains that while implementing AI on L1 is theoretically possible, it is impractical due to security and resource constraints.

“AI can be implemented on blockchain Layers 1, 2, or 3… In practice, Layer 3 is where AI is most effectively and frequently utilized, leveraging the blockchain’s strengths while accommodating AI’s computational needs,” Lian explained.

On L2, the blockchain advisor noted that AI can optimize scalability. However, AI is most frequently utilized in L3, enabling a diverse range of AI-powered applications while leveraging blockchain’s strengths.

Meanwhile, CZ discusses AI’s placement in the blockchain ecosystem amid growing interest in AI-integrated L2 networks. In June 2024, Binance Labs (now YZI Labs) invested in Zircuit, an AI-enhanced L2 network that utilizes zero-knowledge rollups to improve security.

This investment signals Binance’s strategic focus on AI-blockchain integration, potentially influencing CZ’s latest inquiry.

Ethereum co-founder Vitalik Buterin has also been actively discussing L1 and L2 scaling solutions. Last month, Buterin outlined a roadmap for scaling Ethereum’s L1 and L2 protocols in 2025. However, he also recently cautioned that certain L2 networks will likely fail due to weak economic models and poor execution.

These statements further fuel the debate on whether AI projects should build their sovereign chains or integrate with existing ecosystems.

Nevertheless, CZ’s timing in raising this question may suggest he is gauging market sentiment for a new AI blockchain initiative. Given Binance’s investment in AI-driven L2 solutions and the increasing interest in modular blockchain architectures, he could be testing the waters for future ventures.

The trade-offs between sovereignty, scalability, and accessibility will shape the future of AI-blockchain integration. This could make it essential for developers and investors to weigh their options carefully.

The post Binance’s CZ Sparks Debate: Should AI Projects Be Built on Layer 1 or Layer 2 Blockchains? appeared first on BeInCrypto.

Hedera (HBAR) has experienced a modest recovery over the past few days but is still facing bearish cues from the broader market. 

The altcoin has been attempting to breach a key price barrier but is struggling due to ongoing negative sentiment, especially in the Futures market. The market conditions remain challenging, making the outlook uncertain for HBAR.

Hedera Traders Are Uncertain

Currently, HBAR is displaying an inverse correlation with Bitcoin, sitting at -0.03. This suggests that while Bitcoin may be attempting a recovery, HBAR is not likely to follow its lead. Instead, the altcoin could move in the opposite direction.

As Bitcoin edges toward potential gains, HBAR may face further declines, especially in the daily chart.

The correlation reflects how HBAR’s price movements may not align with Bitcoin’s actions. As Bitcoin continues its recovery efforts, the broader cryptocurrency market sentiment may influence HBAR’s price in a contrasting manner. HBAR’s negative correlation with Bitcoin makes it vulnerable to additional downward pressure if the larger market remains volatile.

In addition to the correlation with Bitcoin, HBAR’s macro momentum is also shaped by the negative funding rate. The funding rate has been fluctuating and remains in the negative territory.

This indicates that traders are leaning toward short contracts, anticipating further price declines. The ongoing lack of strong recovery in HBAR has reinforced bearish sentiment as traders look to capitalize on any potential downturn.

The sustained negative funding rate reflects the market’s overall skepticism about HBAR’s short-term price action. With traders betting on further drops, the altcoin is under pressure to overcome these pessimistic views. Without a significant bullish catalyst, HBAR may struggle to break free from this bearish trend in the near term.

HBAR Price Faces Challenges

At the time of writing, HBAR price is trading at $0.246, facing the struggle of being stuck under the resistance of $0.250. The altcoin has maintained support at $0.222 for a while, and it is likely to continue holding above this level. However, the resistance of nearly $0.250 remains an obstacle to a breakout, which could prevent HBAR from making significant progress.

Given the current market conditions, HBAR is expected to consolidate between $0.222 and $0.250, as it has done in the past. This consolidation could continue, further delaying any recovery and preventing the altcoin from reaching higher levels. The broader market’s bearish sentiment may further restrict HBAR’s price action.

However, if HBAR manages to breach the $0.250 resistance level and flip $0.267 into support, it could signal a shift toward a bullish trend. In this scenario, the altcoin might rise to $0.314, effectively invalidating the bearish thesis and setting the stage for a more substantial recovery.

The post Hedera’s (HBAR) Price At Risk Due To Declining Dependence On Bitcoin appeared first on BeInCrypto.

Elon Musk’s AI chatbot, Grok, has unintentionally become the center of a crypto controversy, promoting what could be a scam token.

The development comes amid rising concerns of fraudulent crypto, questioning the integrity of token launchpads such as Solana-based Pump.fun, among others.

Crypto Scam Alert: Did Grok AI Accidentally Pump a Token?

Grok, after being prompted by a user’s leading question, initially suggested “GrokCoin” as the name of a meme coin. It then provided a wallet address for the said GrokCoin in response to a now deleted post. Grok also clarified that GROKCOIN is a meme coin on the Solana blockchain, inspired by xAI’s Grok AI.

“GROKCOIN, mentioned in the post, is a memecoin on the Solana blockchain, with the wallet address 3MadWqcN9cSrULn8ikDnan9mF3znoQmBPXtVy6BfSTDB. It’s inspired by xAI’s Grok AI, launched in November 2023, and trades with a current market cap of around $17 million, per CoinMarketCap, but its value is highly volatile.” Grok indicated.

Shortly after, the token’s market capitalization surged to $12 million, with an astonishing $51.9 million trading volume. At press time, the GrokCoin had a market cap of over $25 million. Meanwhile, data on GMGN shows the token’s value soared nearly 100,000%. This surge came as unsuspecting investors bought into what is likely an orchestrated scheme.

“Grok casually dropping a meme coin name, and the market instantly throws millions at it, peak crypto behavior. AI narratives + meme coins are a different kind of money printer no doubt about that,” one user quipped.

Despite this, skepticism remains high. It appears that an individual intentionally created the token before prompting Grok to mention the coin and wallet address publicly. This assumption comes as the question leading to Grok’s response was quickly deleted, suggesting a deliberate effort to manipulate the market.

It is also worth noting that the creator of GrokCoin has created over 470 coins, according to data from Soul Scanner

The incident highlights how scammers exploit AI tools to create and promote fraudulent tokens. It raises serious concerns about the growing trend of AI-driven crypto scams and market manipulation.

Recently, China exposed the DeepSeek crypto fraud, in which scammers used AI-generated materials to deceive investors. Another incident happened in Hong Kong, where scammers used deepfake technology to mislead investors into fraudulent schemes.

Following the latest development, similar Grok-themed tokens are flooding the Solana-based platform Pump.fun. This further adds to market manipulation concerns and potential investor losses.

Against this backdrop, experts warn that the trend may soon collapse under the weight of increasing scams. BeInCrypto reported that the meme coin market may be at risk of crashing as fraudulent projects flood the space.

Regulators are taking notice of these deceptive practices. A new bill proposed in New York aims to impose strict penalties on crypto scammers. As BeInCrypto reported, the bill defines civil fines of up to $5 million for fraudulent activities.

Such measures highlight the growing urgency to combat illicit schemes and protect investors from falling victim to AI-driven fraud.

The post GrokCoin: How Elon Musk’s AI Triggered a $25 Million Token Surge and Sparked Scam Fears appeared first on BeInCrypto.