On December 4, 2024, Haliey Welch, the viral influencer behind the “Hawk Tuah” meme, launched her very own memecoin called Hawk Tuah (HAWK). While the coin initially surged in value, it crashed dramatically by 95% within hours.

This swift drop sparked a wave of accusations, including insider trading and misleading practices, leading to backlash and controversy. As people continue to fall for scam coins with no real utility, the Hawk Tuah debacle has raised serious questions about the ethics of influencer-driven cryptocurrency projects.

1. The Launch of Hawk Tuah (HAWK) Coin The Hawk Tuah coin was launched at 10:00 PM UTC on December 4, 2024, with great fanfare. The memecoin quickly rose to a market capitalization of nearly $490 million.

The coin was launched on the Solana blockchain, known for its speed and low transaction fees, making it an attractive platform for a quick launch.

2. The Sudden Crash But within hours, the value of Hawk Tuah plummeted by over 95%, and its market cap shrank to about $41.7 million.

Investors, who had seen the coin’s price soar, were left furious and confused. Many accused Welch’s team of orchestrating a scam, manipulating the market, and betraying their trust.

3. Allegations of “Pump and Dump” Schemes One of the primary accusations was that Hawk Tuah was part of a “pump and dump” scheme. This scam involves inflating a coin’s value artificially to attract investors, only for the promoters to sell off their holdings, causing the price to crash.

Reports from platforms like Bubblemaps and DexScreener revealed that up to 90% of the coin’s supply was initially controlled by a few related wallets, raising suspicion of insider trading and market manipulation.

4. Haliey Welch’s Denial Haliey Welch addressed the backlash on X (formerly Twitter), denying any wrongdoing. She insisted that no key opinion leaders (KOLs) had received free coins and explained that her team had implemented measures to prevent sniping, a tactic where investors quickly buy up tokens at launch.

Despite these claims, many were skeptical, with some even claiming that Welch’s team had been selling the coins from the start.

5. The Sniping Incident On-chain data revealed that a single wallet sniped 17.5% of the Hawk Tuah supply almost immediately after the launch.

This wallet used approximately $993,000 worth of Wrapped Solana (WSOL) to acquire the tokens, later selling them for a profit of $1.3 million. This raised further concerns about insider manipulation, as the large-scale purchase and subsequent sale seemed too coordinated to be a coincidence.

6. Legal and Regulatory Concerns In the aftermath of the crash, there were whispers of potential legal action.

Several investors filed complaints with the SEC, questioning whether the launch constituted a fraudulent scheme. Law firms have started reaching out to affected investors, offering legal assistance to recover their losses.

7. Welch’s Background and Motivation Welch’s rise to fame came from a viral video where she mimicked the sound “hawk tuah.” She launched the coin with the intention of uniting her fanbase and countering the rise of fake coins using her name.

In an interview, she claimed that Hawk Tuah was meant to be a genuine project for her community, despite the backlash.

8. The Risks of Meme Coins Meme coins like Hawk Tuah are notorious for their volatility and lack of utility. While they offer a low-cost entry point for investors, they also carry significant risks. The Hawk Tuah incident highlights the dangers of investing in these unregulated digital assets, where price swings can be extreme and largely driven by speculation.

9. Backlash Against Influencers in Crypto Welch is not the first influencer to face criticism for promoting unregulated crypto projects. Celebrities like Kim Kardashian and Logan Paul have also been involved in controversies surrounding cryptocurrencies, highlighting the need for greater transparency and accountability in influencer-led ventures.

10. The Aftermath The Hawk Tuah memecoin launch has sparked significant debate about the role of influencers in the crypto space.

While Welch may have intended to provide something genuine for her fans, the scandal surrounding the coin raises critical questions about transparency, ethics, and the risks of meme coins. Investors are now more cautious, and regulators are stepping in to ensure that these types of projects are held accountable.

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