On December 4, social media influencer Hailey Welch’s attempt to launch a memecoin ended in controversy as the cryptocurrency’s value plummeted from $500 million to $60 million within minutes of its debut.
Welch, known as the “Hawk Tuah Girl” after going viral for a comedic viral video earlier this year, launched the $HAWK token on the Solana blockchain. The launch quickly attracted attention, but what followed was a spectacular crash that sparked heated debates within the crypto community.
The controversy deepened when Welch took to social media claiming, “Team hasn’t sold one token and not 1 KOL was given 1 free token.” However, community notes on the platform quickly challenged this statement, presenting evidence that “the ‘team’ and insiders have actually been selling their token since launch.”
Analysis of the token’s distribution revealed concerning patterns, with reports indicating that 96% of the supply was concentrated in a single cluster. Community members pointed out that many holders “have never purchased anything and have only sold the tokens they were given.”
The incident has reignited discussions about the risks associated with celebrity-backed cryptocurrencies. Despite Welch’s claims that they “tried to stop snipers as best we could through high fee’s in the start of launch on @MeteoraAG,” crypto experts noted warning signs of potential issues with the token’s distribution and trading patterns.
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Trading volume for $HAWK has since increased by 951.67%, according to CoinMarketCap, though this activity has done little to restore confidence in the project. The crypto community continues to demand greater transparency, with some suggesting that Welch may face legal scrutiny over the launch’s handling.
The rapid rise and fall of $HAWK serves as a stark reminder of the volatile nature of memecoins and the importance of thorough due diligence in cryptocurrency investments.
Even Coffeezilla got involved tweeting several warnings to Welch. He tried to get on the X livestream and confront the team too, however they muted his mic.
