HAWK coin’s rug pull has now scammed Haliey Welch fans after the memecoin crashed from its nearly $500 million market cap to $60 million.
Hailey Welch, a prominent social media influencer, recently made headlines with the launch of her own memecoin, Hawk Tuah, on December 4.
However, the excitement quickly turned to dismay as the cryptocurrency experienced a dramatic collapse, plummeting from a market valuation of $500 million to just $60 million in a mere 20 minutes.
This staggering drop of nearly 88% has reignited discussions within the cryptocurrency community about the inherent volatility associated with memecoins and the risks they pose to investors.
The swift decline of the HAWK token has raised suspicions among many crypto users who suspect that the token was designed with malicious intent, potentially as a “rug pull” scheme.
A rug pull occurs when developers withdraw liquidity or abandon a project, leaving investors with worthless tokens.
In the case of Hawk Tuah, early reports suggested that the token’s supply was “sniped” shortly after launch—a term used to describe how bots or early investors can rapidly acquire large quantities of a new token, thereby limiting access for the broader community and increasing risks for later investors.
Despite the chaos, some holders, including a user known as ZeusLFG, expressed optimism, indicating that not all investors had sold their HAWKs.
This reflects a varied sentiment within the community, where hope persists even amid turmoil.
The fallout from the botched launch has prompted several law firms to consider legal action against Welch and the Hawk Tuah project for allegedly defrauding millions of investors.
On Wednesday evening, the crypto community directed significant criticism at Welch, who has gained notoriety as the “Hawk Tuah girl” after a viral 10-second clip of her catchphrase circulated online earlier this year.
Since then, she has built a substantial following and launched various projects, including a dating advice app and the Talk Tuah Podcast.
In late October, Welch teased the possibility of launching the Hawk Tuah memecoin, sharing an edited image of herself adorned with various memecoin-themed accessories.
Her post, which read, “Gm X, I heard it’s a meme super cycle,” stirred speculation about the impending launch, but many in the crypto community expressed trepidation, fearing it might lead to another celebrity-led rug pull.
On November 26, Welch announced her partnership with the Web3 platform overHere to introduce the HAWK memecoin, claiming it was not merely another token but rather a project poised to “redefine the crypto space.”
However, once the token crashed, investors, analysts, and blockchain investigators quickly called out Welch and her team, accusing them of insider trading and manipulating the market.
Many of the initial buyers were Welch’s fans, many of whom were newcomers to the cryptocurrency landscape.
In the midst of the backlash, Welch revealed the token’s “Hawkanomics,” which stated that only 2% of the total supply was allocated for “Free Public allocation.”
Meanwhile, a significant 17% was designated for “strategic allocation,” which was unlocked at launch and reportedly directed to insider wallets.
Data from Bubblemaps on Dexscreener indicated that approximately 80% of the memecoin’s supply was controlled by a small number of related wallets.
One particular wallet was able to acquire an astonishing 17.5% of the total supply at launch, subsequently selling it for around $1.3 million in profit almost immediately.
Meanwhile, countless crypto investors and Welch’s fans reported losing thousands of dollars within just ten minutes of the token’s launch.
Despite allegations of insider trading, Welch and the Hawk Tuah team denied any wrongdoing, asserting that they had not sold any tokens.
However, on-chain data seems to contradict their claims. During an intense discussion on X Space, popular YouTuber and internet investigator Coffeezilla confronted the Hawk Tuah team about the more than $1 million in fees generated from the token while investors were left to deal with the fallout.
Coffeezilla pressed the team for answers, highlighting that the massive sell-off appeared to be more closely linked to insider trading rather than simply the actions of snipers.
In response, the team interrupted him and insisted that they had no intention of scamming fans for a mere $50,000.
They also revealed that a foundation for the project had been established in the Cayman Islands, which required substantial funding.
Describing the launch as one of the “most horrible” he had ever encountered, Coffeezilla criticized the tokenomics of Hawk Tuah, calling them the worst he had seen among all the projects he had reviewed.
He further questioned the destination of the approximately $16.69 million raised during the pre-sale, but the team failed to provide clear responses and even silenced his microphone during the exchange.
Ultimately, as tensions rose and questions remained unanswered, Welch announced that she was “going to sleep,” leaving many in the community frustrated and concerned about the future of the Hawk Tuah project.
This incident serves as a stark reminder of the risks associated with investing in memecoins and the potential for fraud in the rapidly evolving cryptocurrency landscape.
As the dust settles, many are left wondering about the implications of celebrity involvement in the crypto space and the need for greater transparency and accountability to protect investors.
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