AI Cryptos Show Mixed Reactions to Imposed Restrictions on Grok

TheNewsCryptoPublished on 2026-01-12Last updated on 2026-01-12

Abstract

Grok, the AI tool integrated into X, is facing global scrutiny and restrictions due to its role in generating non-consensual offensive deepfakes. Countries including Indonesia, Malaysia, the UK, and India have taken action, ranging from blocking the platform to issuing warnings and demanding content removal. This controversy has influenced the AI cryptocurrency market, resulting in mixed reactions. Some top AI cryptos like TAO, NEAR, and ICP saw declines of over 1-2%, while others such as IP, GLM, and KAITO posted gains of up to 21%. Broader economic factors, including US unemployment and upcoming inflation data, also contribute to the sector's volatility.

Grok remains surrounded by the controversy over the creation of offensive deepfakes. Indonesia and Malaysia have taken stringent action, while the UK has threatened action and India has rung an alarm over it. The AI segment, in general, has taken note of this, and reactions are somewhat reflecting on AI cryptos.

Restrictions on Grok

Grok, the built-in AI tool of X, is under the scanner across the world, with a few countries reportedly taking strict actions against the bot. It all began with Grok creating offensive deepfakes of women without their consent – simply on the prompt typed by users. Backlash was quick, and multiple countries responded to it first-hand.

Malaysia and Indonesia have reportedly blocked Grok, citing the failure of the platform to curb non-consentual offensive deepfakes. The UK has issued a warning on similar lines while highlighting that the platform was not doing enough to keep its users safe digitally.

In India, the Ministry of Electronics & Information Technology, or MeitY, has ordered the platform to remove such content and submit a report within 72 hours. Authorities have also underlined the misuse of the tool by users while calling it the platform’s failure in ensuring preventive mechanisms.

Reaction of AI Cryptos

Some of the top AI cryptos are down at the time of writing this article. This includes TAO, NEAR, and ICP. They have shed approximately 1.10%, 1.71%, and 2.35% over the last 24 hours, respectively. These AI cryptos are now trading at $281.58, $1.67, and $3.13, applicable in the same order.

However, there are AI cryptos that have gained substantial value during the same timeline. For instance, IP is up by 21.32% and is exchanging hands at $2.57. GLM has soared by 3.26% to $0.3020. And, KAITO has surged by 7.99% to $0.6359.

Other Factors Influencing AI Cryptos

Other factors, in addition to Grok’s controversy, that could have possibly affected AI cryptos are the recent unemployment data and the anticipated US inflation data. The unemployment data shows a drop to 4.4% in December 2025, but it is paired with sluggish job growth throughout 2025.

Data for US inflation is expected to be announced soon. It was last noted to be 2.68% as on November 30, 2025, down from 3.01% as on September 30, 2025. Data for October 2025 was not reported due to the government shutdown. It remains to be seen where the AI crypto segment moves in the days to come, considering the Trump-Powell feud just got bigger.

Highlighted Crypto News Today:

Meme Coins Lead Record Crypto Project Failures in 2025

TagsAI CRYPTOGROK

Trending Cryptos

ctr
CitreaCTR
wstusdt
wrapped stUSDTWSTUSDT
apr
aPrioriAPR
ctx
Cryptex FinanceCTX
audio
AudiusAUDIO
mantra
MantraMANTRA
xvs
VenusXVS
waxl
AxelarWAXL
bill
Billions NetworkBILL
pyth
PYTH (Pyth)PYTH
rune
THORChainRUNE
velodrome
Velodrome FinanceVELODROME
brev
BrevisBREV
zrx
ZRX（0X）ZRX
cake
PancakeSwapCAKE

Related Questions

QWhat is the main reason for the restrictions imposed on Grok by countries like Indonesia and Malaysia?

AThe main reason is Grok's failure to curb non-consensual offensive deepfakes, particularly of women, created based on user prompts.

QWhich AI cryptocurrencies have lost value in the last 24 hours according to the article?

ATAO, NEAR, and ICP have lost value, shedding approximately 1.10%, 1.71%, and 2.35% respectively.

QName two AI cryptocurrencies that have gained substantial value in the last 24 hours.

AIP (up 21.32%) and KAITO (up 7.99%) have gained substantial value.

QWhat action has India's MeitY taken regarding the Grok platform?

AIndia's Ministry of Electronics & Information Technology (MeitY) has ordered the platform to remove offensive content and submit a compliance report within 72 hours.

QBesides the Grok controversy, what other factors are mentioned as potentially influencing AI cryptos?

AOther factors include recent unemployment data showing a drop to 4.4% in December 2025 with sluggish job growth, and the anticipated US inflation data announcement.

Related Reads

GPT-5.6 Countdown: Abandon the Illusion of a Single API, Computational Iteration Can't Outpace a Single Page of Compliance

In mid-June, three seemingly independent industry events—the compliance-driven throttling of Fable 5, the open-sourcing of GLM-5.2, and the leaked release timeline for GPT-5.6—are pushing the global AI industry toward a watershed moment. These shifts signal a fundamental restructuring of the industry's underlying logic. First, **"usability" has substantially overtaken "advanced capabilities"** as the primary weight, pushing the global large language model (LLM) supply chain into a "dual-track" phase of controlled closed-source and local open-source coexistence. Second, **the competitive moats of closed-source giants are shifting**. Their technical focus is moving from "language intelligence" toward "spatial intelligence (world models)"—a domain heavily reliant on computing power. Third, faced with常态化 transnational compliance risks, **a "model-agnostic" decoupled design has become a survival necessity for application-layer developers to maintain business continuity.** The article details how Anthropic's Fable 5, despite its advanced engineering feats, was restricted for non-U.S. citizens within 72 hours of launch, highlighting how geopolitical compliance can instantly limit even the most advanced models. In response, the open-source camp, exemplified by Zhipu AI's MIT-licensed GLM-5.2, is gaining market share by offering stable performance improvements and significant cost advantages (up to 70% savings for enterprises), while achieving full adaptation with domestic semiconductor platforms. Meanwhile, closed-source leaders like OpenAI are pivoting. The anticipated GPT-5.6 reportedly shifts focus from language to spatial intelligence and world models, aiming to rebuild a generational gap in areas like 3D understanding, simulation, and industrial design that demand immense compute. The core conclusion is that the LLM supply chain's logic has changed. Enterprises must now evaluate infrastructure based on a composite of technical performance and policy compliance. For developers, complete reliance on a single closed-source API poses unacceptable risk. Implementing a truly model-agnostic architecture—enabling swift switches to compliant, locally deployable open-source alternatives—is no longer just good practice but a fundamental baseline for business continuity.

marsbit1h ago

GPT-5.6 Countdown: Abandon the Illusion of a Single API, Computational Iteration Can't Outpace a Single Page of Compliance

marsbit1h ago

Is the 'Token Subsidy War' Among AI Giants Almost Over?

The article discusses the ongoing "token subsidy war" among AI giants like OpenAI and Anthropic, questioning whether it's nearing its end. It reveals that current AI subscription prices are heavily subsidized, with some plans offering tokens at up to 70 times the actual cost to attract and retain heavy users, especially developers and enterprises. This strategy mirrors past internet-era subsidy battles, but with a key difference: AI tokens lack "lock-in" effects. Unlike ride-hailing or food delivery apps, users can easily switch between AI providers as APIs become standardized, making it difficult for companies to raise prices post-subsidy. The piece highlights a structural asymmetry in the competition. Giants like Google, with massive advertising revenue, can afford to subsidize tokens indefinitely, akin to using "tokens as a weapon." In contrast, venture-backed companies like OpenAI and Anthropic face pressure to become profitable, especially as they approach IPO. The article cites Google Ventures founder Bill Maris, who suggests Google could slash token prices by 80%, putting immense pressure on competitors. Two potential endgames are presented: the "internet service" model (subsidize, monopolize, then raise prices) and the "utility" model (tokens become a standardized, low-margin commodity like electricity). Given the low switching costs, the latter seems more likely. The competition may not have a single winner but could instead accelerate AI's evolution into a foundational, infrastructure-level technology, akin to a public utility. For now, users continue to benefit from heavily subsidized token costs.

marsbit1h ago

Is the 'Token Subsidy War' Among AI Giants Almost Over?

marsbit1h ago

Beyond the Stadium: The Profitable Games Surrounding the World Cup

"Beyond the Pitch: The Profit Game Around the World Cup" The FIFA World Cup transcends being a sporting spectacle, evolving into a massive global arena for speculation and profit-seeking. The 2026 tournament has amplified this dynamic, creating a multi-layered ecosystem of financial opportunism alongside the football. **Prediction markets** have surged into the mainstream. Platforms like Polymarket and Kalshi saw trading volumes for World Cup contracts soar, attracting new users with their financial trading model and high-profile, chain-based wealth stories that overshadow traditional sports betting in terms of growth and narrative. However, **traditional sportsbooks** remain the dominant force, leveraging established user habits, legal markets, and comprehensive product offerings to handle the vast majority of speculative wagers, with projections suggesting record-breaking betting volumes. Capital markets also react. **"Concept stocks"** in countries like South Korea and Japan experience volatile price swings based on team performance and anticipated fan spending on items like chicken, beer, and viewing parties, effectively becoming a stock market reflecting fan sentiment. The **ticket resale market** has become a sophisticated arena for arbitrage. Prices fluctuate wildly based on team draws and star power, with sellers sometimes listing tickets they don't yet own in a practice akin to short-selling, while FIFA's own "Right to Buy" tokens add another layer of speculative trading. **Collectibles and merchandise** offer another avenue. Panini sticker albums, with their inherent scarcity and nostalgic value, can become high-value collectibles. Limited-edition or locally themed jerseys command significant premiums on secondary markets, and even counterfeit vendors profit from fans' desire for affordable match-day identity. The **cryptocurrency** space has seen a frenzy of speculative, unauthorized World Cup-themed meme coins on chains like Solana. These tokens, often exploiting team names and player imagery, experience extreme pump-and-dump cycles, creating stories of massive gains for a few early entrants and steep losses for many others. Finally, an entire industry thrives on **providing information and tools** to other speculators. Developers create platforms like SeatSidekick to track ticket inventory and prices, while paid Telegram groups and subscriptions sell betting tips and predictions, monetizing the widespread desire for an informational edge. In essence, the World Cup has become a compressed, global laboratory for speculation. While the games determine champions on the field, a parallel, complex network of financial transactions—spanning prediction contracts, bets, stocks, tickets, collectibles, crypto, and information services—settles its own scores in the global market.

marsbit2h ago

Beyond the Stadium: The Profitable Games Surrounding the World Cup

marsbit2h ago

Hyperliquid ETF Claim Draws Attention As HYPE Narrative Builds On X

A social media claim has brought attention to Hyperliquid (HYPE) and the growth of its related ETF products. According to a June 20 post on X by AlphaOnChain, three Hyperliquid ETFs launched in May 2026 have collectively amassed $158 million in assets under management, led by a Bitwise fund with $88 million and a 21Shares fund with $66 million. The article notes this claim is from social media and not verified by official issuer data, advising caution. Nonetheless, the report highlights that HYPE is gaining traction as a notable altcoin narrative. Its focus on on-chain perpetual trading and exchange infrastructure places it at the intersection of DeFi and derivatives, attracting traders looking for high-conviction plays beyond Bitcoin and Ethereum. The key takeaway is that while social momentum can influence short-term markets, sustainable growth for HYPE would require confirmed demand, liquidity, and continued ecosystem development.

bitcoinist3h ago

Hyperliquid ETF Claim Draws Attention As HYPE Narrative Builds On X

bitcoinist3h ago

How Does Codex Use a Computer? Three Entry Points and Permission Boundaries

This article explains the three primary methods for Codex to interact with a computer, each with distinct use cases, permission boundaries, and trust levels. **1. Computer Use:** This offers the broadest access, allowing Codex to visually control and interact with the graphical user interface of authorized macOS/Windows apps, system settings, and even iOS simulators. It's ideal for tasks lacking APIs or structured tools, such as operating legacy software or multi-app workflows. However, it's the slowest method and has the widest permission scope, requiring careful supervision for sensitive actions. **2. Chrome Extension:** This grants Codex access to the user's logged-in Chrome browser state, including cookies, profiles, and open tabs. It's best for tasks requiring user identity across websites like Gmail, LinkedIn, Salesforce, or internal dashboards. Its key advantage is multi-tab control for complex workflows. While more powerful for browser-based tasks than Computer Use, it carries higher sensitivity as actions are performed under the user's identity. **3. In-App Browser:** This is a browser isolated within the Codex thread, separate from the user's personal browsing data. It excels in web development and debugging scenarios—previewing local servers, testing responsive layouts, or annotating designs directly on the page. Its isolation is a strength for development but a limitation for tasks requiring login sessions. The core principle is to choose the narrowest, safest, and most structured interface for the task. Use plugins or MCPs first, resort to visual control (Computer Use) only for GUI-dependent tasks, employ the Chrome extension for identity-reliant browser work, and prefer the In-App Browser for isolated development. **Appshots** are clarified as a fourth, complementary tool for *inputting* context—capturing a screenshot of a window to point Codex to something—rather than a method for Codex to *act*. Together, this layered approach highlights a key to AI agent productization: not granting unlimited permissions, but constraining them within clear boundaries for specific tasks while preserving user oversight.

marsbit3h ago

How Does Codex Use a Computer? Three Entry Points and Permission Boundaries

marsbit3h ago

Trading

Spot
Futures

Hot Articles

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of AI (AI) are presented below.

活动图片

Top Questions