Haliey Welch, popularly known as the “Hawk Tuah Girl” after her viral TikTok video earlier this year, has found herself at the centre of a cryptocurrency controversy. Her attempt to enter the crypto market with a meme-based cryptocurrency, the Hawk Tuah Coin, has led to significant financial losses for investors, with allegations of fraud and insider trading now shadowing her latest venture. Here’s a detailed look at what unfolded.
Welch became a household name during the summer when a YouTube video of her making a lighthearted joke at a Nashville event went viral. Since then, she has parlayed her online fame into multiple ventures, including launching a podcast, collaborating with major personalities like country star Zach Bryan, and establishing herself as a social media influencer. Her rapid rise to celebrity status was met with both admiration and criticism, setting the stage for her controversial foray into cryptocurrency.
The Launch of Hawk Tuah Coin
On December 6, 2024, Welch launched Hawk Tuah Coin ($HAWK) on the blockchain platform Solana. Branded as a “memecoin,” $HAWK aimed to emulate the success of cryptocurrencies like Dogecoin, which gained popularity for their lighthearted origins and strong online communities. Welch described Hawk Tuah Coin as a project with real potential, insisting it was “not just a cash grab.”
Hawk is live!!!
HAWKThXRcNL9ZGZKqgUXLm4W8tnRZ7U6MVdEepSutj34 pic.twitter.com/9GFgYwpeFA
— Haliey Welch (@HalieyWelchX) December 4, 2024
However, what began as a promising launch quickly spiralled into chaos. Within hours of its debut, the coin’s market capitalization soared to nearly $500 million, only to crash by 95% shortly afterward. By the following day, its value had plummeted to $25 million, leaving many investors with significant losses.
What Went Wrong With Hawk Tuah Coin?
Several factors contributed to the disastrous launch of Hawk Tuah Coin, including accusations of poor planning, insider trading, and allegations of a “pump-and-dump” scheme. According to reports, 80-90% of the coin’s supply was controlled by entities known as “snipers.” These individuals purchased large quantities of the coin immediately after launch, only to sell off their holdings at inflated prices, causing the value to tank.
BREAKING: Man Loses Life Savings on Hawk Tuah Meme Coin Scam pic.twitter.com/BI9gOJC9wD
— Danny Polishchuk (@Dannyjokes) December 6, 2024
Critics, including popular crypto YouTuber Stephen Findeisen (known as Coffeezilla), accused Welch and her team of insider trading. They claimed that 17% of the coin’s supply was pre-sold to insiders without restrictions, while only 3% was made available to the public. This imbalance, they argued, made the coin’s collapse inevitable.
While Welch had a team of advisors, including attorneys and public relations professionals, her lack of experience in the cryptocurrency sector became apparent. Critics suggested that she was misinformed or failed to ask critical questions during the development and launch of $HAWK.
Want to steal 50 million dollars?
Well, the Hawk Tuah girl did.
She launched a coin, rugged it, and then shamelessly went to sleep like nothing happened.
Here’s how Hawk Tuah stole $50M from her fans 🧵 pic.twitter.com/3e3hrBxQE4
— Shuriken (@ShurikenTrade) December 6, 2024
The fallout from the launch was swift and severe. Social media platforms were flooded with complaints from investors who had lost significant amounts of money. Many accused Welch of orchestrating a pump-and-dump scheme—a fraudulent practice where developers artificially inflate a coin’s value before selling off their holdings for profit.
The Securities and Exchange Commission (SEC) has reportedly received complaints from investors. Some have even sought legal representation from firms specialising in cryptocurrency fraud, such as Burwick Law, to recover their losses.
Welch’s Defense
Amid the growing backlash, Welch took to social media to defend herself and her team. She denied any wrongdoing, stating that neither she nor her team had sold any tokens and that efforts were made to prevent snipers from exploiting the launch.
In a post on X (formerly Twitter), Welch wrote, “We tried to stop snipers as best we could through high fees in the start of launch. Fees have now been dropped.” She also emphasised that no influencers or key opinion leaders (KOLs) were given free tokens to promote the coin.
Despite her attempts to address the concerns, Welch’s statements did little to quell the outrage. Many investors demanded greater accountability, accusing her of negligence at best and deliberate fraud at worst.
Stephen Findeisen, who has made a name for himself exposing cryptocurrency scams, called the launch “one of the most miserable, horrible launches I’ve ever seen.” In an interview with Rolling Stone, he suggested that Welch might not have fully understood the complexities of the crypto market but also speculated that she might have been motivated by financial gain without considering the potential fallout.
It’s been a week since Hawk Tuah girl, @HalieyWelchX, has logged after her coin, $HAWK, rugged.
She could’ve easily had a +$10MIL marketcap coin legitimately, but “investors” bought pre-sale tokens then dumped on the public. A rug.
Poor girl, she almost had a hot memecoin.
— BURGERS? (@burgersart) December 11, 2024
“There were lots of signs this was not going to work,” Findeisen said. “I hope she acknowledges the harm caused, whether intentional or not, and takes steps to help her fans who lost money.”
As the controversy unfolds, Welch’s future in the cryptocurrency space remains uncertain. While her team has denied any wrongdoing, the damage to her reputation could be difficult to repair. For now, she faces the challenge of rebuilding trust with her audience and addressing the financial losses incurred by her fans. Whether Welch’s misstep will serve as a cautionary tale or a stepping stone for personal growth remains to be seen.
