- Viral Sensation Hailey Welch Faces Legal Scrutiny Over $HAWK Cryptocurrency Collapse
Hailey Welch, widely recognised from her viral “Hawk Tuah” video earlier this year, is under intense scrutiny following the catastrophic launch of her cryptocurrency, $HAWK. The token, introduced on December 4, 2024, on the Solana blockchain, experienced a meteoric rise, reaching a market capitalisation of $490 million, before plummeting over 90% within hours, settling around $25 million.
Allegations of Fraud and Insider Trading
The rapid decline has led to accusations of a “pump-and-dump” scheme, where early investors inflate the asset’s value before selling off their holdings, leaving subsequent investors with significant losses. Reports indicate that a substantial portion of $HAWK’s supply was controlled by a small group of insiders. Notably, one wallet acquired 17.5% of the total supply and profited $1.3 million within 90 minutes.
Blockchain analysis revealed that 96% of $HAWK tokens were concentrated in a limited number of related wallets, raising concerns about potential coordinated trading activities.
Legal Actions and Investor Backlash
In response to the losses, investors have initiated legal proceedings. A lawsuit filed in the U.S. District Court for the Eastern District of New York names Tuah The Moon Foundation, overHere Ltd founder Clinton So, and influencer Alex Larson Schultz as defendants, alleging improper registration and misrepresentation of the token as a security. Welch is not named in this lawsuit.
Welch’s Response
Welch has publicly denied any wrongdoing, asserting that neither she nor her team sold any tokens during the launch. She claimed that high transaction fees were implemented to deter “snipers”—investors aiming for quick profits.
Community Reaction
The incident has sparked widespread criticism online. Prominent figures like YouTuber Coffeezilla have highlighted the situation, emphasizing the risks associated with celebrity-endorsed cryptocurrencies.
A Cautionary Tale
This episode underscores the potential pitfalls of investing in celebrity-backed cryptocurrencies. Experts advise thorough research and caution, noting that such projects often lack transparency and may be driven more by hype than substance.
As investigations continue, the $HAWK debacle serves as a stark reminder of the importance of due diligence in the volatile world of cryptocurrency investments.
Summary of Hawk Crypto Coin ($HAWK)
Hawk Crypto Coin ($HAWK) was a meme-based cryptocurrency launched on the Solana blockchain in December 2024, inspired by the viral internet sensation Hailey Welch, known for her “Hawk Tuah” video. The token quickly gained massive attention, soaring to a market cap of $490 million before crashing by over 90% within hours.
The project has faced allegations of being a “pump-and-dump” scheme, with evidence showing that a small group of insider wallets controlled most of the token supply. Some wallets reportedly profited millions within minutes of launch, raising concerns about insider trading and market manipulation.
Legal actions have been taken against entities associated with $HAWK, though Welch has denied any direct involvement in fraudulent activities. The incident serves as a cautionary tale about the risks of investing in celebrity-endorsed cryptocurrencies and highlights the importance of conducting thorough research before investing.
The launch and subsequent collapse of the $HAWK cryptocurrency have ignited a flurry of discussions on Twitter. Many users have expressed outrage, labelling the incident as a “pump-and-dump” scheme and calling for legal action against those involved. Comments such as “She’s gonna have to Talk Tuah judge soon” and “She deserves jail time” reflect the prevailing sentiment of betrayal and demand for accountability.
In response to the backlash, Hailey Welch addressed the community in a Twitter Space, expressing gratitude to her supporters and attributing the coin’s rapid decline to exploitative bots. She emphasised that neither she nor her team sold any tokens during the launch and reiterated her commitment to the project and its community.
Despite these assurances, skepticism remains high among Twitter users. Some have questioned the project’s legitimacy, suggesting that insiders may have manipulated the coin’s value for personal gain. The incident has sparked broader conversations about the risks associated with meme-based cryptocurrencies and the importance of due diligence before investing.
As the situation unfolds, the $HAWK controversy continues to be a hot topic on Twitter, with users closely monitoring developments and sharing their perspectives on the implications for the broader crypto community.
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