What Is the Grok Coin?

• Grok Coin (GROK) is an Ethereum ERC-20 meme token that launched in November 2023.

• Its contract address is 0x8390a1DA07E376ef7aDd4Be859BA74Fb83aA02D5. To make the correct token appear in an EVM wallet like MetaMask, add this address once and save it for reference.

• The community site describes GROK as community-owned, with no official team or development fund and a renounced contract.

• GROK is not an xAI product and has no official connection to Elon Musk or the Grok AI chatbot.

• Other unrelated cryptocurrencies use the GROK name or ticker, so the contract address matters more than the token name.

GROK is an ERC-20 token on Ethereum, so transfers and decentralized trades run on the Ethereum network and require ETH to pay gas. Balances appear once you add the token to your wallet, and trades settle on-chain.

The community site describes the contract as renounced, and independent contract data shows the owner address as the zero address, which is consistent with that claim. Renouncing ownership removes certain administrator controls, but it doesn't remove market, liquidity, smart contract, phishing, or token-impersonation risks.

GROK doesn't have its own blockchain. Like most meme coins, its price depends on trading demand, liquidity, community interest, and broader crypto market conditions rather than cash flow. Keep track of total costs, such as Ethereum gas fees and slippage, so your records match what you actually paid.

GROK is a small, speculative meme token, so its price and trading liquidity can change sharply.

There is no single GROK asset across every crypto app. Several unrelated tokens share the same ticker, which can lead to very different prices in search results. When checking GROK market data, make sure the listing uses the Ethereum contract 0x8390a1DA07E376ef7aDd4Be859BA74Fb83aA02D5.

• Choose an Ethereum-compatible wallet or trading platform that supports the correct GROK token.

• Check the Ethereum contract address before buying: 0x8390a1DA07E376ef7aDd4Be859BA74Fb83aA02D5.

• If you're using a decentralized exchange, fund your wallet with enough ETH for the purchase and network fees.

• Review the token address, price, liquidity, slippage, fees, and the amount of GROK you'll receive before approving the trade.

• Download the confirmations and note the fees so you can calculate your crypto cost basis and proceeds later.

Buying GROK with ETH or another crypto is a taxable disposal of the crypto you spend.

GROK trades on Ethereum decentralized exchanges and on some centralized crypto platforms. Listings can change, so confirm the platform supports this Ethereum contract before trading or withdrawing.

If a platform lists "GROK" without enough information to tell which token it is, don't assume it's the asset covered here. If you don't recognize a link or contract address, stop. On a decentralized exchange, also review liquidity and slippage before approving the transaction.

GROK began as a community meme token, not a token tied to xAI or the Grok chatbot. Its community site still states that it has no official team or development fund.

GROK is used mainly for trading and community participation. Any projects the community builds around it are community-created and separate from xAI. Additional use cases don't guarantee demand or higher prices, and GROK remains a speculative token whose value depends heavily on liquidity and market interest.

• Token confusion: Multiple unrelated assets use the GROK name or ticker. One character off in an address can put you in the wrong token, so check the contract every time.

• Price volatility: GROK can move sharply over short periods, and large trades can have a greater price impact when liquidity is thin.

• Liquidity risk: Thin markets can mean wider spreads and greater price impact.

• Smart contract and ecosystem risk: Renounced ownership doesn't guarantee that every trading pool, wallet, or community application is secure. Copycat GROK tokens may also keep admin controls.

• Impersonation risk: GROK's branding references the Grok name, but the token is not an xAI product.

• Speculative demand: Meme-token prices depend heavily on community attention and broader crypto sentiment.

Only risk what you can afford to lose.

For US taxpayers, GROK follows the same federal tax rules as other digital assets. The IRS treats digital assets as property (IRS Notice 2014-21).

• Buying GROK with US dollars: Not taxable by itself. Your cost basis is the purchase price plus fees.

• Buying GROK with ETH or another crypto: A taxable disposal of the crypto you spend, which is how most of the buying steps above work.

• Selling GROK: A capital gain or loss, equal to your proceeds minus your cost basis, if you hold GROK as an investment.

• Swapping GROK: Exchanging GROK for ETH, a stablecoin, or another digital asset is a taxable disposal of the GROK you give up.

• Spending GROK: A taxable disposal.

• Receiving GROK as payment or a reward: Ordinary income at fair market value when you receive or gain control of the tokens. GROK doesn't pay interest itself; any interest would come from a separate third-party lending product. Digital asset income not reported elsewhere goes on Schedule 1, line 8v, while wages are reported on Form W-2 and self-employment or business income goes on Schedule C. That value becomes your cost basis for a later sale.

• Moving GROK between wallets you own: Not taxable by itself, but the ETH you pay for gas is generally a small taxable disposal.

Sales and swaps of investment-held GROK generally go on Form 8949 and Schedule D. Ordinary income is reported on the applicable income form or schedule rather than Form 8949.

Keep records of acquisition dates, cost basis, wallet addresses, transaction hashes, gas fees, proceeds, and transfers between your own accounts. You must report taxable activity even if you don't receive a Form 1099-DA. Self-custody wallet software itself generally does not issue Form 1099-DA for ordinary wallet activity, although separate brokers or third-party services may have their own reporting obligations. With complete records, TokenTax can help you reconcile disposals, income, gas, and fees.

Learn more in our memecoin tax guide and guide to reporting cryptocurrency on taxes.

Does GROK have "0% tax"?

No, not for US income tax purposes. GROK's community site describes the token as having a "0% Tax." That refers to the token's contract-level trading setup, not federal tax law. Selling, swapping, or spending GROK can still create a taxable gain or loss, and GROK received as income may create ordinary or business income.

The GROK community site doesn't describe a standing official airdrop. Be cautious of websites or messages promising free GROK, especially if they ask you to connect a wallet or approve a transaction.

For US taxpayers, receiving tokens through an airdrop may create taxable income when you gain dominion and control, depending on the facts. Leaving a token untouched doesn't by itself decide the tax result. The IRS's direct airdrop guidance (Rev. Rul. 2019-24) covers cryptocurrency received following a hard fork and does not provide comprehensive rules for every promotional or unsolicited token distribution.

The IRS hasn't addressed unsolicited spam or scam tokens. Many have no market value, and some can drain your wallet if you interact with them. Record them, but don't approve transactions to claim, swap, or sell unknown tokens.

If you receive a legitimate taxable distribution, record the date, amount, fair market value when you gained control of the tokens, wallet address, and transaction record. That value becomes your cost basis for a later sale or swap. Learn more about how crypto airdrops are taxed, or talk to our crypto tax experts if you're unsure.