Recently, Haliey Welch, the viral sensation known as the "Hawk Tuah Girl", launched her very own cryptocurrency called $HAWK, aiming to capitalize on her social media fame. The launch, which took place on December 4, 2024, on the Solana blockchain, started off with much promise; within minutes, the market capitalization of the token skyrocketed to nearly $500 million.
Unfortunately, the excitement was short-lived. Just 20 minutes after its launch, the value of $HAWK plummeted to around $60 million, reducing almost all of its market value. Despite Welch's earlier assertion to Fortune and her social media followers claiming the coin was "not just a cash grab," the rapid decline sparked accusations of foul play and potential fraud, leaving many investors reeling from losses.
On social media, Welch had jubilantly announced, "Hawk is live!!!" along with videos showcasing her glee over the launch. Following the price drop, she attempted to quell the growing animosity by stating her team had engaged mechanisms to prevent large, speculative buyouts from entities known as "snipers" who purchase large volumes of coins at launch. Welch insisted they hadn't sold any tokens themselves and had tried to control the launch, mentioning the use of high transaction fees "in the start of launch." Nevertheless, her explanations did little to alleviate growing concerns.
Critics quickly pointed to the curious timing of the coin’s abrupt drop as evidence of potential rule-bending, or even outright insider trading. Reports indicated around 80 to 90 percent of the supply controlled by insiders, which fits the profile of classic "pump and dump" schemes. Such schemes typically inflate the value of assets artificially before insiders sell off their holdings, causing prices to crash.
Welch's method had prompted cries of dishonesty from some users who were burned by the rapid drop. CoinTelegraph reported instances where insiders controlled up to 97 percent of the overall supply, raising questions about the ethics and legality behind the actions surrounding the launch. Many social media users expressed outrage, calling Welch’s launch "one of the most miserable, horrible launches" they had ever witnessed.
The swift rise and collapse of $HAWK haven’t gone unnoticed by regulators either. After the launch, at least one investor reached out to the U.S. Securities and Exchange Commission (SEC) to file complaints, underscoring the seriousness of accusations leveled against Welch.
Previously known for her viral TikTok content, Haliey Welch spoke with optimism about the cryptocurrency before its launch, expressing her gratitude for her fame and the opportunity to create something meaningful. "Ever since my life changed so publicly, I realized there had to be a reason for it," Welch stated, describing how her popularity inspired her to start various initiatives and projects, including her recently established nonprofit dedicated to animal welfare, "Haliey Welch’s Paws Across America.
Despite her philanthropic aspirations, many remain skeptical about Welch's motives following the memecoin launch. By cashing out approximately $50 million, she has stirred doubts about her genuine intentions and ability to navigate the volatile world of cryptocurrency responsibly.
Critics argue there is much to overlook with the rise of memecoins, which derive their value largely from social media trends rather than established financial principles. Memecoins like Dogecoin have gained traction over the last few years, boasting massive value increases due to viral memes, yet they remain fraught with risks and potential pitfalls.
While Welch has yet to face legal consequences, her actions might inspire more scrutiny and investigations from both regulatory bodies and the public. The world of cryptocurrency is known to attract both enthusiasts eager for quick gains and cynics warning of inevitable losses.
Now, as more individuals analyze the launch of $HAWK and its rapid decline, the questions surrounding Welch's integrity and the legitimacy of her efforts remain hot topics of discussion. For many investors who suffered losses, the incidents surrounding Welch’s memecoin serve as yet another reminder of the unpredictable nature of the cryptocurrency market.
Will Welch's next steps help repair her reputation? Or has the backlash from this incident overshadowed her other initiatives? Regardless, the Hawk Tuah phenomenon is one many will continue to follow closely, as they seek to understand how this young influencer connects with the chaotic world of cryptocurrency.