Hawk Tuah: She Spat On That Thang!
Haliey Welch famously known as the “Hawk Tuah girl,” who recently launched her cryptocurrency Hawk ($HAWK) has caused a whirlwind of trouble for herself that has rocked the crypto and social media worlds. Welch’s launch of a meme coin shows the potential and the pitfalls of meme coins and is a reminder of how easy it is to lose money.
Haliey became a viral sensation from Tennessee and gained internet fame through her “Hawk Tuah” meme and built a massive following after a viral short shared on Tik Tok. She Leveraged her popularity and launched $HAWK on the Solana blockchain on December 5, 2024.
Her stated goal was to unite her community and address counterfeit coins being marketed under her name.
The launch initially appeared successful with $HAWK’s market cap soaring to USD 490 million shortly after going live. Welch’s fans many of whom had no prior crypto experience eagerly bought into the coin now doubt drawn by her charm and assurances. Free token distributions and active promotion across Welch’s social media channels created more hype.
Just 20 minutes after hitting an all time high, $HAWK plummeted by over 95%, leaving a trail of disappointed investors and prompting allegations of a “pump and dump” scheme. Critics claimed that insiders and Welch’s team capitalised on the initial hype to sell off tokens leaving fans with devalued assets.
Welch and her team which is managed by OverHere have denied the allegations. They insisted that no tokens had been sold by Welch or her associates and attributed the crash to external factors such as “snipers” automated traders exploiting price discrepancies.
“Team hasn’t sold one token and not 1 KOL [Key Opinion Leader] was given a free token.”
Despite these statements blockchain followers like YouTuber Coffeezilla provided evidence suggesting insider trading and significant profits from transaction fees. Coffeezilla called the launch “one of the most miserable” he had observed and accused Welch’s team of exploiting her fans’ trust.
Fun or Financial Trap?
The backlash increased as Welch hosted an X Spaces audio event which was intended to address concerns but only created more drama for the one time internet sensation. Welch’s participation was minimal and her team provided evasive answers that has left many unconvinced. Afterwards Welch deleted the recording a move seen by critics as an attempt to escape accountability.
OverHere released a statement attempting to clarify the coin’s tokenomics. They claimed that Welch’s team’s 10% allocation was locked for a year and vested over three years. They also addressed token distribution but their explanation did little to dispel allegations of insider trading and sniping.
The Hawk Tuah debacle sheds light on the volatile nature of meme coins. Unlike established cryptocurrencies like Bitcoin and Ethereum meme coins often rely on social media hype and influencer promotion, leaving them vulnerable to extreme price swings. Their appeal lies in their accessibility and low entry cost but these same qualities make them risky.
According to Carol Alexander a finance professor at Sussex University young investors are increasingly drawn to meme coins but often lack the knowledge to navigate the risks. “They carry the same dangers as traditional cryptocurrencies but often with even less protection,” she explained.
Welch’s case is not unique. Other celebrities, including Kim Kardashian and Logan Paul, have faced backlash for their involvement in cryptocurrency promotions. Kardashian was fined USD 1.26 million by U.S. regulators for failing to disclose her financial interest in EthereumMax. Similarly, Logan Paul’s crypto ventures sparked outrage over misleading promotions.
More Lessons Learned
Do Your Research: Blindly following influencers into investments can lead to significant losses. It’s crucial to understand the project’s fundamentals and risks.
Beware of Hype: Viral popularity does not guarantee financial integrity. Investors should approach meme coins with caution and scepticism.
Demand Transparency: Clear communication and accountability from project leaders are essential. Any attempt to obscure tokenomics or avoid scrutiny should raise red flags.
Understand the Market: The cryptocurrency market is inherently volatile. Investing more than you can afford to lose is a recipe for disaster.
While Welch’s team continues to deny wrongdoing, the damage to her reputation and the financial losses of her fans may be irreparable. The controversy surrounding $HAWK underscores the need for stricter regulations in the crypto space to protect investors from fraudulent schemes.
For Welch, the future remains uncertain. Will she rebuild trust with her community, or will this be the end of her foray into the crypto world? As the dust settles, one thing is clear: the “Hawk Tuah” phenomenon serves as a stark reminder of the risks lurking behind the allure of meme coins.
image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.