Grok is an artificial intelligence model developed by xAI – founded by Elon Musk in 2023. Since its launch, Grok AI has thrived with a different approach to GPT-like models, being a success on X.
In particular due to its ability to scan what users are saying on the social platform in real time. This feature allows for valuable insights into user sentiment, opinions, and trends, which Finbold decided to explore further.
We then asked Grok to scan X and list three cryptocurrencies people should “stay away from.” Surprisingly, the AI named Dogecoin (DOGE), Shiba Inu (SHIB) and Tron (TRX). The first two are very popular on the platform and were previously promoted by Elon Musk.
Grok (by xAI) output to stay away from Dogecoin (DOGE). Source: Finbold
Shiba Inu (SHIB) is another cryptocurrency to avoid
Second, Elon Musk’s developed AI warns investors to stay away from Shiba Inu. Interestingly, Grok attributes SHIB’s success to being another meme-based cryptocurrency, similar to Dogecoin.
The reasons to avoid Shiba Inu are pretty much the same as the ones listed for DOGE:
“Lack of utility: Similar to Dogecoin, Shiba Inu does not offer any significant improvements or innovations in the cryptocurrency space.
High volatility: Shiba Inu’s value is also subject to wild fluctuations due to its meme-based branding and social media hype.
Limited use cases: Like Dogecoin, Shiba Inu is primarily used as a speculative investment rather than a practical currency for everyday transactions.”
– Grok, by xAI
Grok (by xAI) output to stay away from Shiba Inu (SHIB). Source: Finbold
Stay away from Tron (TRX)
Finally, Grok urges investors to avoid Tron, a blockchain platform mostly known for offering efficient transactions with stablecoins. Recently, Circle announced the removal of USDC from the Tron Network.
1/ We are discontinuing USDC on the TRON blockchain in a phased transition. Effective immediately, we will no longer mint USDC on TRON. Transfers and redemptions of USDC on TRON will continue to operate normally through February 2025. Read the details: https://t.co/kw9A3ZUpWH
— Circle (@circle) February 21, 2024As for the reasons to stay away from TRX, AI mentions regulatory and centralization concerns, plus a competitive environment.
“Regulatory concerns: The founder of Tron, Justin Sun, has faced regulatory scrutiny and accusations of plagiarism, which could negatively impact the project’s reputation and future development.
Centralization concerns: Despite its goal of decentralization, some critics argue that Tron is too centralized, with a significant portion of the TRX tokens being held by the development team and a small number of large investors.
Competition: Tron faces stiff competition from other blockchain-based platforms, such as Ethereum and EOS, which could limit its growth and adoption.”
– Grok, by xAI
Grok (by xAI) output to stay away from Tron (TRX). Source: Finbold
However, these outputs are based on X user’s sentiments and overall perception. Therefore, investors must not use this information alone while making financial decisions. Instead, use these insights as a motivator to study and understand each of these cryptocurrencies to stay away from.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
