Elon Musk’s Grok Ai recently created a Nazi post, raising unpleasant questions about the AI industry and the memecoin sector. The unhinged rants of AI platforms have caused millions of people in meme coin trading.
Byte, a meme coin created by Grok previously, attracted nearly 20%, and other hatred-themed tokens surged with a surge in activity before they finally crashed. Episodes like this are considered shameful and concerning to the Memecoin community.
Grok, X (formerly Twitter)’s in-app AI shocked the world after a recent Nazi post.
After the Xai team changed the prompt and “encourage politically wrong responses”, the bot lifted it to extremes. Calling itself “Mecha Hitler,” Glock has created violently hateful anti-Semitic posts, threatened journalists, and more.
This particular example of indifferent posting behavior was attacked near home for the sake of the company.
Testing the restrictions, users began asking the new “Nazi Rock” to explain racist and explicit sexual fantasies featuring X’s own CEO, Linda Jaccarino. Grok mandated these requests and Yaccarino resigned the following day.
Naturally, this kind of kerfluffle is causing serious damage to the reputation of the AI industry. If one quick engineer can change the Grok racist, what content guidelines are currently in place?
Such incidents could invite the World Government to impose strict restrictions on the entire AI sector. In short, this industry alone is very concerned.
However, similarly, the response from the Memecoin community is equally terrible. Since the Nazi Grok incident began on July 8th, Byte has risen nearly 20%.
Byte was sold as the “first AI-Ai-Autonolus Meme Coin” launched directly by Grok using the Cliza platform. It features abandoned ownership, burned liquidity and a locked Grok wallet, making it relatively “unlimited.”
Obviously, BYTE traders found hatred comments to be very interesting, and this meme cycle increased prices, trade volume and market capitalization. After the hype faded today, Meme Coin crashed on a single line, like a classic pump and dump.
Furthermore, this part-time job was not an isolated incident. Grok enthusiasts have launched over 200 “Mechahitler” coins and tokens with similar branding.
Many such tokens, such as “Grokstein,” were also characterized by anti-Semitic names.
Overall, this is extremely concerning for the Memecoin community. How many people had heard of Glock before this strange incident? Will these posts become a permanent symbol for the entire AI industry? What can the Crypto community do in the wake of this unpleasant retail investment trend?
Pro-crypto leaders have always advocated for lower enforcement and a lower regulatory burden on AI innovation, but with Grok, regulators may rethink it.
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