Hawk Tuah Memecoin Under Scrutiny After 91% Crash: What Went Wrong?

Hawk Tuah (HAWK), a memecoin created by viral influencer Haliey Welch, made waves upon its launch—but its rise was short-lived. Just hours after debuting, the token’s value plummeted by 91%, leaving many investors with significant losses.

This dramatic crash has sparked suspicions of insider trading and market manipulation, bringing Welch under increasing scrutiny.

A Promising Start, But Things Took a Turn for the Worse

On December 4, HAWK launched to immediate attention, rapidly reaching a market cap of $490 million, largely driven by the popularity of influencer Haliey Welch. Known for her viral catchphrase, Welch parlayed her fame into a merchandise line and a podcast featuring high-profile figures like Mark Cuban.

Welch publicly stated that HAWK was “not just a cash grab” and aimed to change how people perceive crypto. She emphasized that her team wouldn’t pressure anyone to buy the token and had plans to distribute free tokens to her fans and customers. Welch also reassured investors by revealing she would hold 10% of the tokens but would not sell them for a year.

What Went Wrong With Hawk Thua?

Despite the initial hype, the token’s value began to freefall shortly after its release, dropping 91% to a market cap of just $48 million. As of now, HAWK trades at a mere $0.004826, leaving many investors disillusioned.

The rapid devaluation raised red flags, with many pointing to possible insider trading and sniping—the practice of certain entities purchasing large portions of a token’s supply during its launch. Data from DexScreener and Bubblemaps revealed that insider wallets and snipers controlled up to 91% of HAWK’s initial supply.

Allegations of Market Manipulation

The sudden drop in value has fueled accusations that Welch’s team might be guilty of market manipulation. However, Welch and her team have denied these allegations. In a tweet, she insisted that neither she nor any key opinion leaders (KOLs) had received free tokens. Furthermore, her team stated they tried to mitigate the risk of sniping by imposing high fees on the Meteora platform.

Despite these efforts, data from SOLScanner uncovered troubling evidence: one wallet purchased 17.5% of HAWK’s supply mere seconds after the launch, using 4,195 Wrapped Solana (WSOL) worth nearly $1 million. This wallet quickly sold its tokens within an hour, netting a profit of $1.3 million—an event that further fueled suspicions of foul play.

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Investors Seek Justice

As the controversy deepens, many investors who bought HAWK at its peak have seen their investments wiped out. Some even exchanged other coins for HAWK, only to watch its value plummet.

In response, several users have filed complaints with the SEC, suggesting that the launch may have violated securities regulations. Lawyers are now offering their services to the affected investors, raising the possibility of legal repercussions for Welch and her team.

Hawk Tuah’s rise and fall serves as a stark reminder of the volatility that can make—or break—an investment.