Elon Musk's tweet on Epstein and GrokAI’s hallucination puts the spotlight on PNUT,  MechaHitler

• PNUT stalls Tuesday's recovery, sparked by Elon Musk’s tweet about the Jeffrey Epstein case.
• X’s GrokAI referenced MechaHitler, resulting in a new trend in the crypto market with the creation of over 250 MechaHitler tokens.
• The technical outlook for PNUT indicates extended losses after the short-term surge, while the MechaHitler trend gradually gains traction. 

Elon Musk's tweets on Tuesday once again sent waves in the crypto space. First, the meme coin Peanut the Squirrel (PNUT) soared after Tesla's CEO posted a meme criticizing the lack of action taken by US authorities in the Jeffrey Epstein case by comparing it with the story of the viral squirrel named Peanut.

Later, the X’s GrokAI unprompted response included sensitive keywords like “MechaHitler” in an apparent hallucination. As GrokAI’s response went viral, more than 250 “MechaHitler” tokens were created.

While the short-lived hype around PNUT is cooling off on Wednesday, risking extended losses, the MechaHitler trend still holds.

Elon’s Peanut and Epstein's reference backed PNUT’s recovery

Elon Musk gave his take on the Jeffrey Epstein case in a recent X post, starting with “They arrested (and killed) Peanut” and pointing out the lack of arrests related to Epstein’s client list.

The move comes as the rift between Elon Musk and US President Donald Trump deepens following the approval of the “Big, Beautiful Bill” and Musk's launch of the America Party.  

Trump and associates deny the existence of a client list maintained by Epstein, as per a recent BBC report.

PNUT stalls after the short-term recovery

Peanut the Squirrel (PNUT) jumped 7.70% on Tuesday, backed by Musk's reference to the Peanut. However, the meme coin slips by 2.62% at press time on Wednesday as the hype-driven recovery cools off. 

If the declining trend continues, PNUT could test the $0.1958 level, last seen on June 26.

Both the Moving Average Convergence/Divergence (MACD) and the Relative Strength Index (RSI) hold a neutral sign.

PNUT/USDT daily price chart.

To extend gains, PNUT must surpass the overhead trendline at $0.2400 formed by connecting the highs of May 14 and July 3.

GrokAI’s hallucination sparks a new meme coin trend

X-based GrokAI joins the league of Elon Musk, known for sparking rallies in meme coins. With multiple unprompted replies, the Grok referenced sensitive keywords such as “MechaHitler,” “GigaPutin,” and “CyberStalin.”

The replies are part of the hallucinated responses from Grok, a phenomenon observed across artificial intelligence models. As the responses went viral, cryptocurrency traders rushed to meme coin generators, resulting in over 250 “MechaHitler” named tokens. 

The Dextools’ data shows 244 such tokens available on Solana, with the initial volume crossing $8 million. 

Mechahitler search on Dextools.

Despite the sudden hype, the meme coin risks sharing a similar fate to short-lived hyped coins like Hawk Tuah or Joe Biden-linked meme coins.