Binance founder Changpeng Zhao (CZ) has issued a strong warning to the crypto community about the proliferation of fraudulent tokens exploiting the names of high-profile individuals and AI ventures—specifically, a fake “Grok” token falsely claiming ties to Elon Musk.
In a recent post on X (formerly Twitter), CZ cautioned users to avoid any coin marketed as connected to Musk’s artificial intelligence project, xAI’s Grok chatbot. He emphasized that Musk has not launched any such token and labeled all “Grok” coins as scams. “There is no Grok token,” CZ wrote. “All of them are scams.”
CZ’s statement echoes similar alerts made in the past, including direct posts from Musk, who has repeatedly distanced himself from crypto projects using his name or companies as bait to attract investors. Despite these warnings, scam tokens continue to appear, often taking advantage of trends involving meme coins, AI hype, or celebrity branding.
The rise of fake tokens has become increasingly problematic, particularly on decentralized exchanges where listings are not subject to the same scrutiny as centralized platforms. Many of these coins gain rapid popularity due to viral marketing or misleading claims, only to end in rug pulls or liquidity drains.
CZ’s warning adds to growing calls from industry leaders and regulators for better investor protection and education amid the booming—but often unregulated—crypto landscape. As fraudulent activity rises, users are urged to conduct thorough due diligence and remain skeptical of tokens tied to celebrities or trending tech with no verified backing.
