Haliey Welch's HAWK memecoin launch leads to a 90% crash, sparking allegations of insider trading and potential legal action from investors.
The recent launch of Haliey Welch's memecoin, HAWK, has sparked outrage in the cryptocurrency community after its value plummeted by over 90% within hours of its debut. Welch, known as the "Hawk Tuah Girl," faces accusations of insider trading and potential legal action from disgruntled investors.
Haliey Welch, a social media influencer, launched her memecoin on the Solana blockchain, claiming it was not just another cash grab. Initially, the HAWK token surged to a market cap of $490 million shortly after its launch. However, within minutes, the value began to plummet, leading to a staggering 91% decrease in valuation.
Investors quickly expressed their frustration on social media, with many reporting significant financial losses. One user claimed to have lost $43,000 after investing in the token, while another reported a loss of over $1.3 million after swapping funds from another memecoin.
Critics have accused Welch and her team of orchestrating a pump-and-dump scheme, where insiders sell off their holdings at inflated prices, leaving regular investors with worthless tokens. Data from blockchain analytics indicated that a small group of wallets controlled a significant portion of the HAWK supply, with one wallet reportedly acquiring 17.5% of the total supply shortly after launch.
Despite Welch's claims that her team did not sell any tokens, the evidence suggests otherwise. Observers noted that 80-90% of the token's supply was concentrated in a few wallets, raising suspicions about the integrity of the launch.
As the fallout continued, many investors began filing complaints with the Securities and Exchange Commission (SEC), seeking legal action against Welch and her team. Law firms have started advertising their services to those who lost money in the HAWK debacle, indicating a potential wave of lawsuits on the horizon.
In a recent online discussion, Welch attempted to address the concerns but faced intense scrutiny from crypto investigator Coffeezilla, who labeled the launch as one of the worst he had ever seen. The conversation turned contentious, with Welch's team struggling to provide satisfactory answers to pressing questions about the token's financial management.
The HAWK memecoin launch has become a cautionary tale in the cryptocurrency space, highlighting the risks associated with celebrity-endorsed tokens. As the community grapples with the aftermath, the future of Welch's reputation and potential legal consequences remain uncertain. Investors are left to ponder the lessons learned from this tumultuous event, emphasizing the need for due diligence in the volatile world of cryptocurrency investments.
