"Hawk Tuah" Meme Coin Under Fire for Alleged Scamming of Crypto Buyers.

A meme coin launched by viral influencer Haliey Welch, known as "Hawk Tuah," has been accused of scamming crypto buyers after a sudden pump and dump, resulting in significant market value loss. Victims are considering legal action against the influencer and the project.

In the volatile world of cryptocurrencies, a new meme coin has emerged, only to be mired in controversy and allegations of insider trading. The coin, HAWK, was launched by viral influencer Haliey Welch, also known as "Hawk Tuah," on the Solana network on December 4, 2024. However, within hours of its launch, HAWK experienced a sudden pump and dump, resulting in significant market value loss for unsuspecting investors [1].

According to Dexscreener data, HAWK's market valuation soared to almost $425 million before plummeting to $30 million within five hours [1]. As of this writing, the meme coin is valued slightly higher at $48 million, but still 90% down from its initial peak. The sudden downfall sparked outrage in the cryptocurrency community, with some investors reporting significant losses.

One investor, with the pseudonym JIGGA.5mbK, claimed that their $35,000 investment in HAWK was reduced to $2,000 after just 10 minutes of buying [1]. The trader also alleged insider trading, stating that Welch and her team had not disclosed that they were planning to buy 97% of the coin's supply and sell it almost immediately to make a large profit.

Similar allegations were made by influential cryptocurrency investor Beanie, who accused token insiders of hoarding 97% of the supply and selling them at the top [1]. On-chain detective Stephen Findeisen, better known as Coffeezilla, called the launch one of the most "miserable and horrible" ever, with evidence of insider trading directly linked to trader accounts [1].

Despite these allegations, Welch denied any wrongdoing through her X account, stating that no free token was given to anyone from her team or key opinion leaders [1]. However, users quickly added a community note, stating that Welch had not been transparent about the coin's distribution and that the sudden pump and dump could have been an intentional manipulation to profit from unsuspecting investors.

The controversy surrounding HAWK serves as a reminder of the risks associated with investing in meme coins and the importance of transparency and disclosure in the cryptocurrency industry. As the investigation into the matter continues, it will be interesting to see how the situation unfolds and whether any legal action will be taken against Welch and her team.

[1] References:
[1] Benzinga. (2024, December 4). Hawk Tuah Girl Accused of Scamming Crypto Buyers After Newly Launched Meme Coin Pumps and Dumps: Victims Contemplate Legal Action. https://www.benzinga.com/general/entertainment/24/12/42333397/hawk-tuah-girl-accused-of-scamming-crypto-buyers-after-newly-launched-meme-coin-pumps-and-dumps-victims-contemplate-legal-action