$Grok token is flying high! Nearly 600 tokens with the same name surged by over a thousand times, hiding the risk of RugPull.

Cryptocurrency speculation is rampant. Ever since xAI, the artificial intelligence company founded by Musk, launched the "Grok" chatbot recently, hundreds of tokens with the same name were created within days, skyrocketing in value by thousands of times, but lurking with Rugpull risks. Is creating a cryptocurrency really that easy?

$GROK Tokens Everywhere

Two days ago, X Twitter launched its first AI language model product "Grok" through xAI, aiming at tech companies like Microsoft, Google, and OpenAI.

As expected, since the launch of this product, over 560 tokens named "$GROK" have appeared on the chain, sparking several waves of speculation on various trading platforms.

Data shows that the current highest market value $GROK token 0xd27… was launched two days ago and has reached $12.13 million, also having the highest trading volume in the past 24 hours, reaching up to $14.38 million.

However, a similar situation did not occur with the Sideshift token $XAI, which shares the same name as the company xAI that introduced the product, as the token has dropped by 3.4% in the past week.

Reportedly, Sideshift is a trading platform that does not require registration or KYC and can execute instant cross-chain and cross-asset trades.

Dangers Lurking Everywhere

As shown in the above image, with liquidity ranging from just hundreds of thousands to millions, there are hidden dangers with the potential for hundreds or even thousands of times increase in a single day.

According to DEXtools data, some $GROK tokens with better liquidity have become popular trading pairs on the platform.

However, there have been malicious token deployers who take advantage of the doubling of prices to sell off a large amount of tokens they hold, removing a significant amount of liquidity, resulting in estimated losses of millions of dollars for participants.

That being said, is creating cryptocurrency really that simple?

Is Creating Cryptocurrency Really That Simple?

A deeper understanding reveals that creating cryptocurrency is not as difficult as imagined, typically involving two methods:

1. Creating tokens by developing a blockchain independently
2. Deploying token contracts using common blockchains like ETH or BSC

Topflightapps points out that the former provides token creators with the most functionality, security, and flexibility, while the latter eliminates the need for writing smart contracts and other complex underlying technical operations, making the deployment of token contracts straightforward.

In other words, when lacking professional technical background or knowledge, creating one's own cryptocurrency can be cumbersome, but with some intuitive online DIY platforms, creating tokens with a single click can simplify the process and expedite adoption.

However, the deployment of tokens through these lower-threshold methods will also make fraudulent activities more rampant.