In a shocking turn of events that has echoed through the halls of both cryptocurrency and influencer spaces, Hailey Welch, popularly known as the “Hawk Tuah Girl” for her daredevil acts and celebrity lifestyle, has been slapped with a lawsuit over the failed meme coin she endorsed. The 27-year-old social media star boasts millions of followers on the respective platforms and has been accused of misleading investors, who have lost combined millions when the digital currency went down to almost zero at the beginning of this month.
A Popular Viral Star Turned Crypto Advocate
Welch is famous for her videos showing her doing adrenaline-fueled thrills and her motivational posts that build her into a picture of bold ambition and savvy financial moves. Earlier this year, she finally trained her guns on venturing into the now-burgeoning arena of cryptocurrency-all in the name of promoting “HawkCoin,” a meme coin marketed as a ‘fun and fruitful investment opportunity’ for the upcoming younger generation of savvy technology users.
In a series of promotional posts, Welch touted HawkCoin as the ‘future of decentralized finance’ as she urged her followers to invest early to ‘soar with the hawks.’ Welch’s endorsements, which purportedly included a six-figure promotional deal, were quite instrumental in the initial popularity of the coin and drove its market cap to nearly $50 million just two weeks following its launch.
The Collapse
However, in mid-December, the coin’s fortune changed dramatically when its value plummeted by more than 95% within a few days. Analysts said that the collapse was attributed to the absence of intrinsic value, market manipulation by early investors, and lack of liquidity to sustain the trading volume. The aftermath left thousands of loss-surviving retail investors, many of whom say they were inspired by Welch’s endorsement, completely devastated by financial loss.
The Lawsuit
A federal class-action lawsuit filed in California this week claims that Welch, along with the creators of HawkCoin, engaged in deceptive marketing practices. According to the plaintiffs, Welch falsely advertised the coin’s viability and did not disclose any risk attached to such speculative investments.
“Ms. Welch utilized her platform to swindle young neophyte investors into purchasing HawkCoin, notwithstanding her knowledge of it being a volatile and speculative security,” the lawsuit states. “Her influence and lack of diligence have caused thousands to harm financially.”
It seeks damages of up to $25 million and demands stricter regulations for influencer-endorsed financial products.
Welch’s Response
Welch has not yet publicly made any comments on the lawsuit, but sources close to the influencer say she is “in shock and deeply saddened” at the claims. Her legal counsel issued a concise statement, emphasizing that Welch had no insider knowledge regarding HawkCoin’s financial structure or the motives of its founders. “She was merely a paid promoter and is not responsible for the coin’s performance in the market,” the statement said.
Broader Implications
This case has reignited the debate about the ethical responsibilities of social media influencers in promoting financial products. The fall of HawkCoin has followed similar events involving celebrity-endorsed cryptocurrencies, and this raises questions on the payment, influence, and accountability area in this so-called digital age.
Financial experts warn that, although influencer-backed investments appear attractive, they tend to lack the regular oversight and transparency of conventional financial products.
What is Coming Next?
With the legal wrangling taking place, Welch’s career and the fate of her brand now loom visibly in the air. They also serve as a reminder for her followers, and indeed the general public, of the consequences of striving to grab quick bucks in the rapidly oscillating climate of the up-and-down world of cryptocurrency.
