Key Takeaways
- Haliey Welch launched a meme coin on the Solana blockchain named $HAWK.
- The $HAWK token surged to $400 within a few hours of its launch only to crash by 90% later.
- Investors are accusing Haliey of scamming through a pump-and-dump strategy to manipulate the surge.
- The token had its initial pricing at $0.005492 and was launched on December 4.
- $HAWK peaked its valuation by $490 million creating an initial buzz within the crypto ecosystem.
- Haliey Welch denied all the crypto manipulation allegations against her through her X account.
The viral sensation Haliey Welch also known as the “Hawk Tuah Girl” launched her memecoin named $HAWK on December 4, 2024.Meme coins are digital currency that depict popular memes or allusions to popular culture. SHAWK is based on the Solana blockchain. Within a few hours of its launch, the cryptocurrency surged to a whopping $400 million in market capitalization, followed by a terrible crash of over 90%.
Hailey is accused of scamming investors with the initial pump and later dump scheme.
The sudden and rapid plunge of $HAWK has been subjected to scrutiny by crypto analysts and investors. The new buyers with large quantities control an estimated 80-90% of the coin supply. During the market movement of $HAWK, a single wallet purchased 17.5% of the total supply of the token, which is estimated to be $990,000 of the total supply of the token. Within 90 minutes of its purchase, the tokens were sold for $1.3 million. This was a huge profit for the wallet holder at the expense of normal crypto investors.
What is Pump and dump and how does it manipulate the crypto market?
Pump and dump is a fraudulent activity in the financial markets. It is particularly common in the stock and crypto markets. The price of stocks is artificially inflated by spreading false and misleading information to attract investors.
After the price increase scammers will sell off their holding at the inflated price. The asset price will collapse because of this sudden selloff. Other investors face significant losses during this collapse.
Though strong allegations are made against Hailey Welch, she denies any crypto manipulations.
In her defense, Haliey Welch posted on her X handle (previously known as Twitter) denying the allegations of her wrongdoings. She confirmed that the team had taken all the necessary steps to detain any suspicious snipers. The imposing of higher fees was her measure to prevent snipers during the launch of $HAWK.
The manager of Haliey Welch told Fortune that only 10% of the $HAWK’s supply is owned by Welck. Her holdings are locked for a year to prevent immediate sales. Welch claimed that the project was intended to be a fun way to interact with her fans and he had no intention of grabbing cash.
The social media criticizes Welch despite her assurance. She is accused of outright scamming her fans. Other influencers like Paige Spiranac expressed criticism by posting that he learned a lesson not to release a memecoin.
Blockchain analysts stated that there is a suspicious concentrated ownership of the $HAWK token. This is creating a speculation of insider trading. The Welch team stated that there is no free distribution of the coin to key opinion leaders(KOL). The allocation to them is locked.
In this third wave of the cryptocurrency cycle investors are shifting toward meme coins. It is a meme coin so investors automatically got attracted to it. The failure of $HAWK is evidence of the risk associated with the meme coin market. Frequently, speculations rather than fundamentals control the meme coin market. This incident also cautions influencers planning to venture into the cryptocurrency market.
Hailey Welch is an American Social media influencer . The humorous street interview at Nashville’s CMA fest in 2024 made her viral on social media. She started her career at a spring factory in Belfast, Tennessee.
She left her job and started focusing on building her social media presence. She started Merchandise and co-founded the AI-powered dating app Pookie Tools. The sudden surge followed by the steep plump of the token has raised concerns within the crypto community. Ordinary investors are mostly affected by this pattern.
Also Read: Putin Endorses Bitcoin As He Questions The Need To Hold Government Reserves In Foreign Currencies
