- HAWK memecoin crashed 91% after initial hype, causing investor losses.
- Allegations of insider trading and market manipulation surround Hawk Tuah’s launch.
The launch of Hawk Tuah (HAWK), a Solana-based memecoin created by viral influencer Haliey Welch, saw a meteoric rise but suffered a dramatic crash within hours. After debuting with a market capitalisation of nearly $490 million on December 4, HAWK’s value plummeted over 91%, leaving many investors reeling from significant losses.
The memecoin, inspired by Welch’s viral “Hawk Tuah” catchphrase, initially captured massive attention due to Welch’s popularity. Known for her merchandise line and podcast featuring prominent figures such as Mark Cuban, Welch promoted HAWK as more than a “cash grab.” She committed to holding 10% of the token supply for a year and pledged to distribute free tokens to her fans.
However, blockchain analysis from Bubblemaps and DexScreener revealed potential insider trading and market manipulation. These reports showed that insiders controlled up to 96% of the token supply at launch, with one wallet purchasing 17.5% of the supply moments after the debut, profiting $1.3 million within an hour. Critics allege that such actions contributed to HAWK’s swift collapse to a $48 million market cap, with the token now trading at $0.0048.
Allegations And Criticisms
Welch and her team have denied the allegations, asserting that no key opinion leaders (KOLs) or team members were given free tokens. They further claimed to have implemented high transaction fees to deter sniping during the launch. OverHere, the team behind HAWK’s launch, explained that the token distribution seen on Bubblemaps adhered to its tokenomics, which include a 12-month lock and three-year vesting period for team-held tokens.
Despite these clarifications, disillusioned investors have filed complaints with the U.S. Securities and Exchange Commission (SEC), citing potential violations of securities regulations. Lawyers are now pursuing claims on behalf of affected investors, raising questions about the accountability of Welch and her team.
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