On December 4, 2024, Haliey Welch, known for her viral TikTok persona “Hawk Tuah Girl,” launched her highly anticipated memecoin, HAWK. The token started at a modest price of $0.000007099 but skyrocketed to $0.00004028 within hours, reaching a $500 million market cap. The rapid surge in value seemed like a dream come true for Welch and her community. However, the excitement was short-lived. Haliey Welch is facing backlash for her sudden venture into the cryptocurrency market with her HAWK memecoin.
In a shocking turn, the token’s value plummeted by more than 50% in less than 20 minutes, and by the end of the day, HAWK had lost 91% of its value, falling to just $29.1 million. The dramatic collapse left many investors with empty wallets and raised questions about the true cause behind the crash.
Crypto enthusiasts quickly suspected foul play, with many pointing to the possibility of a “rug pull.” This term refers to when the creators of a coin sell off their holdings, causing the token’s value to crash, and leaving investors with worthless assets.
Fans and investors alike have been questioning the authenticity of HAWK as Haliey Welch is facing backlash over the lack of clear utility for the coin. Welch, however, denied any wrongdoing. She claimed that her team sold no tokens and even implemented high transaction fees in an attempt to discourage speculative trading. Despite her insistence, blockchain analysis told a different story. Data revealed that a large portion of the HAWK token supply was concentrated in just a few wallets. One of these wallets reportedly grabbed 17.5% of the total supply seconds after launch, earning a $1.3 million profit by selling off the tokens.
Accusations of Insider Trading
On-chain data showed that 96% of the HAWK supply was initially controlled by just a few insiders, fueling further suspicions of market manipulation. As the value of the coin crashed, many investors and critics pointed to these statistics as evidence of insider trading. Some even accused Welch and her team of deliberately profiting from the chaos.
In a live-stream confrontation with popular crypto investigator Coffeezilla, Welch was accused of orchestrating the suspicious activity. Coffeezilla highlighted the on-chain data, which suggested that insiders manipulated the market and made millions in the process. Despite Welch’s denials, the accusations have caused significant damage to the credibility of the HAWK project.
Legal Action and Growing Controversy
The sudden collapse of HAWK has sparked outrage on social media, with many calling for legal action against Welch and her team. A law firm specializing in NFTs and tokens has reportedly begun reaching out to investors, potentially preparing for a lawsuit.
While Welch insists that the crash was due to external market factors, critics are not convinced. They argue that the launch was poorly managed at best, or intentionally exploitative at worst. The controversy surrounding HAWK’s rise and fall has brought attention to the risks associated with meme coins and the potential for unethical practices in the crypto market.
Despite a brief recovery, the HAWK token remains highly volatile. Trust in Welch’s project has been severely damaged, and many investors are now wary of similar ventures in the future. While Welch maintains that the HAWK token was not a “cash grab,” the evidence of market manipulation has made it difficult to salvage the project’s reputation.
Haliey Welch, the social media personality known for her viral catchphrase “hawk tuah,” is making waves in the cryptocurrency world. Following her rise to fame from a street interview in Nashville, Tennessee, Welch has now launched a new memecoin called HAWK on the Solana blockchain.
The Birth of “Hawk Tuah”
Welch gained internet fame in June 2024 after a YouTube video featuring a street interview went viral. During the interview, she used the now-infamous phrase “hawk tuah” about a sexual act. The phrase quickly became a meme, gaining millions of views across platforms like TikTok and Instagram. Welch’s candidness in the interview earned her the nickname “Hawk Tuah Girl,” and she soon became a social media sensation.
Capitalizing on her newfound fame, Welch launched an Instagram account, built a large following, and expanded into various ventures. She created merchandise based on her viral catchphrase, gained representation, and made public appearances, including throwing the ceremonial first pitch at a New York Mets game in August 2024. Welch also launched a podcast, Talk Tuah, which quickly gained popularity on Spotify.
In November 2024, she unveiled a dating advice app called Pookie Tools, developed in collaboration with Ben Ganz, the founder of Ultimate AI Studio. Despite the apparent success of these ventures, Welch has recently turned her attention to the crypto world.
The launch of the HAWK memecoin has stirred up both excitement and skepticism. Memecoins, known for their viral nature and speculative trading, have become a popular trend within the cryptocurrency space. Welch insists that her memecoin is “not just a cash grab,” though she has provided little clarity on its potential utility beyond speculation.
According to Welch, the goal of HAWK is to connect with her fanbase in a new way. She emphasized that her team isn’t actively encouraging fans to buy the coin. Instead, they plan to distribute HAWK tokens for free to her social media followers and merchandise buyers. Welch’s manager, Jonnie Forster, stated that she would own 10% of the coin’s supply but could not sell her tokens for a year.
Memecoins and Their Controversies
While the world of memecoins is often seen as a speculative and risky corner of the crypto industry, Welch is undeterred. She has expressed a desire to shift the public perception of crypto, despite the skepticism surrounding celebrity involvement in the space. Notably, other celebrities like Kim Kardashian and Floyd Mayweather have faced scrutiny from the SEC for failing to disclose payments for promoting cryptocurrencies.
Welch, however, says she was unaware of the government action against celebrities promoting cryptocurrencies. She maintains that HAWK is a fun and innovative way to engage with her fans, rather than a financial gamble.
Critics have raised concerns over the potential for memecoins to exploit communities and undermine the true value of cryptocurrency. Eddy Lazzarin, Chief Technology Officer at Andreessen Horowitz, referred to them as “casinos” and warned of their harmful impact on the long-term vision of crypto. Despite the negative outlook, Welch and her manager remain optimistic about the HAWK coin and its ability to foster fan engagement.
Amid legal concerns and speculative trading, Haliey Welch is facing backlash as her actions in the crypto world spark controversy. As Welch continues to ride the wave of her viral success, the future of HAWK remains uncertain. While the coin’s launch was met with a massive spike in value, it quickly plummeted by over 90%, sparking allegations of a “rug pull” scam. For now, Welch remains committed to exploring new ways to connect with her audience, even if her latest venture raises more questions than answers.
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