Hawk Tuah Memecoin Crashes 91%: Controversy Surrounds Its Launch
Hawk Tuah, a new meme coin created by viral influencer Haliey Welch, attracted attention but quickly crashed. Just a few hours after its launch, the token’s value fell by 91%, causing huge losses to investors. The sudden decline raised questions about insider trading and market manipulation, putting Welch under scrutiny.
The rapid rise and sudden fall of HAWK token
When Hawk Tuah (HAWK) debuted on December 4, it quickly reached a market capitalization of $490 million thanks to the popularity of influencer Haliey Welch. Best known for her viral catchphrases, Welch parlayed her fame into a merchandise line and podcast featuring big-name stars like Mark Cuban.
Welch claimed HAWK was “not just a money grab” and said she wanted to change people’s perceptions of cryptocurrencies. Her team promises not to force anyone to buy tokens and plans to offer free tokens to fans and customers. Welch also said she will keep 10% of the tokens but will not sell them for a year.
However, the value of HAWK fell sharply within hours of its launch, falling by 91% to Market value $48 million. The coin is currently trading at just $0.004826, disappointing many investors.
Insider trading and sniping charges
HAWK’s rapid decline in value has been linked to suspicions of insider trading and sniping, a practice in which certain entities purchase a large portion of the token’s supply upon release.
According to DexScreener data and bubble chartinternal wallets and snipers controlled up to 91% of the supply at the time of the coin’s launch. However, many users accused Welch’s team of market manipulation.
Welch and her team have denied any wrongdoing in response to the accusations. In a recent tweet, she stated that neither she nor any key opinion leaders (KOLs) received free tokens.
Welch’s team even claimed that they tried to reduce sniper risk by using high fees on the Meteora platform.
Investors suffered heavy losses
Despite these efforts, SOLScanner data shows that one wallet purchased 17.5% of HAWK supply Within seconds of launch, 4,195 Wrapped Solana (WSOL) worth nearly $1 million were used. The wallet then sold the tokens within an hour, making a $1.3 million profit, further fueling the controversy
Many investors who purchased the token at a high price have since suffered heavy losses, with some exchanging other tokens for HAWK only to see their investments plummet.
Some users even filed complaints with the SEC, claiming the rollout may have violated securities rules. Lawyers are now offering help to those affected, suggesting Welch and her team may face legal problems.
