On 4 December 2024, Hailey Welch, the popular Tiktok influencer known for her viral “Hawk Tuah” meme, launched her own memecoin, $HAWK, on the Solana blockchain.
What began as a fun, community-driven project quickly spiraled into a controversy, raising serious questions about the token’s legitimacy.
The $HAWK token's debut was nothing short of explosive.
Initially, it surged to a market capitalisation of $500 million within hours of launch, peaking at $0.00004028 per coin.
However, within a mere twenty minutes, the price tumbled by 50%, and in just three hours, it had plummeted by an astonishing 91%.
Such a rapid crash set off alarm bells across the crypto community, with many pointing fingers at potential foul play.
Investors were quick to cry foul, suspecting that the rapid fluctuations in price might be the result of a "rug pull," a term referring to scams in which creators abandon a project and take investors' money with them.
Despite Welch's initial claims that the memecoin was intended to bring her closer to her fanbase, there is growing suspicion about the involvement of insiders in the price drop.
Analysts suggest that “sniping” — where a small group of investors buy large amounts of tokens early on and later sell at a profit — could be the cause of the crash.
Bubblemap, a tool that tracks token distribution, revealed that 96% of the total $HAWK supply is held by a small group of wallets.
One of these wallets reportedly bought 17.5% of the supply just seconds after launch, then sold off a significant portion for a profit of $1.3 million.
Welch’s management team has denied any wrongdoing, insisting that no team member had sold tokens and that they had tried to prevent sniping by implementing high fees in the early stages of the launch.
Despite these claims, scepticism remains high, with critics pointing to the heavily concentrated supply as evidence of potential manipulation.
In a public statement, Welch defended the launch, describing it as a way to engage with her community and create a “fun and secure” platform for fans.
She added,
“It not only empowers my fans but also eliminates the confusion posed by scammers who are constantly releasing unauthorised coins without approval of my name and likeness.”
However, her claims have done little to ease the growing concerns.
Many investors are questioning whether the launch was, in fact, a poorly executed attempt at a genuine community-building initiative, or whether it was part of a much larger scheme to profit from a meme-driven frenzy.
One X user joked, “She’s gonna have to Talk Tuah judge soon,” referencing her viral spitting meme, while another quipped, “She can spit behind bars — sure the guards would enjoy,” highlighting the mounting public anger.
The fallout from the $HAWK crash has prompted calls for legal action.
Crypto investor Scooter has already taken steps to file a formal complaint, urging others to join him.
A prominent law firm, Burwick Law, has also weighed in, offering to represent those who believe they were duped by the token’s collapse.
The possibility of legal repercussions is gaining traction, with many questioning whether Welch or those behind the token could face criminal charges for their role in the crash.
Some have even coined the term "Jail-Tua," suggesting that she could be held accountable for the losses suffered by investors.
Despite the dramatic crash, $HAWK has managed to stay in the media spotlight.
Currently the token is trading at $0.00001480, with its market cap sitting at $56,000 and a 24-hour trading volume of $1.9 million.
Some investors remain hopeful that the token could bounce back, while others are readying themselves for a long legal battle.
The rapid rise and fall of $HAWK raises broader questions about the stability of memecoins and the growing number of scams within the crypto space.
While creators like Hailey Welch may have intended to connect with their communities, the potential for manipulation and insider trading remains a significant concern.
The situation is still developing, and many are waiting to see how legal actions will unfold in the coming weeks.
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