‘Hawk Tuah Crypto Coin Crashes Shortly After Launch’
The launch of the “Hawk Tuah” memecoin on the Solana blockchain by Haliey Welch, known for the viral “hawk tuah” video, has faced significant criticism after a rapid rise and fall in its value within hours. Despite Welch’s assertion to Fortune that the memecoin wasn’t a cash grab, $HAWK’s value dropped from $490 million to $29.1 million quickly, leading to accusations of insider trading due to data showing 96 percent of the coin controlled by insiders.
Some users noticed a significant investor shift from another memecoin to $HAWK, prompting warnings from influencers like Coffeezilla, who labeled the coin as benefitting only insiders and trading bots. Coffeezilla and others accused Welch and her team of pocketing large fees while leaving fans high and dry.
The backlash against Welch led to reports filed with the U.S. Securities and Exchange Commission (SEC), as users questioned the legitimacy of the coin’s launch and the substantial profits made by some insiders. Welch, in her defense, portrayed the coin as a positive way to engage with her fans, despite the chaotic launch events.
Welch’s manager, Jonnie Forster, stressed that they aimed to remain compliant with securities laws and suggested that the memecoin was a way to tokenize Welch’s fan base. The incident highlights the risks associated with memecoins and the importance of thorough research before investing in such projects.
