Hawk Tuah Haliey Welch Crypto Team Raises £2.59M After Token Launch Issues
Fans of Haliey Welch were left disappointed after a botched token launch involving the HAWK meme coin, which resulted in her crypto team making £2.59 million. The value of the token plummeted by 95% soon after its launch, causing a stir among investors and prompting complaints to be filed with the US Securities and Exchange Commission (SEC). Welch, a 22-year-old social media personality, now faces potential legal action over her role in what some are calling a questionable scheme.
Welch rose to online stardom after a viral TikTok video earlier in the year, gaining over 2.5 million followers. Leveraging her popularity, she ventured into the crypto world by promoting the HAWK token as a community incentive for her fans. The token, introduced on the Solana blockchain, was positioned as a way for fans to engage with giveaways connected to Welch’s podcasts and merchandise. However, the token’s sharp decline in value soon after its launch, despite reaching a market cap of £392 million, left investors and fans with significant losses.
Blockchain data analysis from Bubblemaps divulged that nearly 90% of the token supply was controlled by insiders or large buyers during the launch. Welch defended her team’s efforts to prevent such actions, but the damage had already been done. According to Bubblemaps CEO Nicolas Vaiman, the HAWK team orchestrated a quick profit scheme, making £2.59 million. Insider trading allegations have been raised, with claims that significant profits were made by early investors who sold their holdings immediately, destabilizing the token’s price.
Journalist Stephen Findeisen, in a confrontation during an audio event, criticized the launch as highly problematic and accused the team of engaging in insider trading. Despite these serious allegations, Welch’s lawyer revealed that she received £98,135 to promote the coin, alongside a share of net profits. Legal experts warn that Welch could face legal consequences for potentially misleading her followers, with civil or criminal investigations on the horizon.
Disenchanted fans have reached out to the SEC with complaints of fraudulent practices by Welch and her team. This incident serves as a stark reminder of the risks associated with speculative meme coins and unregulated tokens. Experts advise investors to be cautious, avoid low-cost, volatile tokens, and focus on established cryptocurrencies like Bitcoin and Ethereum, which offer stability and can be accessed through regulated platforms.
Remember, investments come with inherent risks and it’s essential to conduct thorough research or seek professional advice before making any financial decisions. Stay informed and cautious in the fast-paced world of cryptocurrencies.
