Haliey Welch, a viral web character referred to as the Hawk Tuah Lady, finds herself embroiled in controversy following the launch of her memecoin HAWK on the Solana blockchain.
The token’s speedy rise and fall have drawn sharp criticism from the crypto group, with accusations of unethical practices that might entice regulatory attraction.
HAWK memecoin
On Dec. 4, the memecoin debuted on the Solana blockchain to a lot acclaim and, in a matter of minutes, surged to a $500 million market cap, solely to nosedive to as little as $60 million shortly after.
This unstable efficiency left many traders fuming as hypothesis grew that the token may need been designed for a pump-and-dump scheme—a tactic wherein malicious builders revenue from artificially inflated costs earlier than abandoning the venture.
Blockchain evaluation from Bubblemaps confirmed additional regarding particulars about HAWK’s launch. In keeping with the agency, almost 96% of the token’s provide was reportedly managed by insider wallets. Such concentrated holdings are sometimes related to market manipulation, additional fueling skepticism concerning the token’s legitimacy.
In an X Areas hosted by the venture’s group, on-chain investigator Coffeezilla slammed Welch and her group for insider buying and selling. He acknowledged:
“You guys generated over one million {dollars} in charges, whereas your followers obtained rug pulled. There have been snipers, however there was additionally insider buying and selling immediately linked to your creator accounts.”
The HAWK scenario was paying homage to earlier superstar token launches on Solana that failed. Earlier this yr, a number of artists and influencers issued tokens throughout a quick pattern, however many of those property misplaced nearly all their worth inside hours and days.
Critics argue that the HAWK token has adopted an analogous trajectory, highlighting the dangers of investing in unproven celebrity-endorsed tokens.
Authorized fallout
The token’s collapse has triggered outrage throughout social media, with some customers reporting the incident to regulatory authorities.
In the meantime, a number of traders declare to have filed complaints with the US Securities and Change Fee (SEC), whereas regulation companies provide authorized assist to those that incurred losses. One agency, Burwick Legislation, publicly inspired affected events to return ahead and discover their choices for recourse.
Including to the uproar, crypto group members created a satirical token referred to as “Straight Tuah Jail,” insinuating that Welch ought to face accountability for the token’s failure. These developments recommend potential authorized challenges for Welch and her group shortly.
Welch’s response
In her protection, Welch denied any wrongdoing in a Dec. 5 submit on X (previously Twitter), stating that her group had not offered tokens and that no influential figures had acquired free allocations.
Welch defined that they launched HAWK utilizing Meteora, a decentralized liquidity protocol, to discourage snipers. She wrote:
“Group hasn’t offered one token and never 1 KOL was given 1 free token We tried to cease snipers as greatest we might by excessive price’s within the begin of launch.”
Over Right here, a platform collaborating with Welch on the launch, echoed her statements. They clarified that the tokenomics had been designed with transparency and that Welch’s group offered no tokens.
In addition they famous that her group’s 10% token allocation is locked for one yr and topic to a three-year vesting schedule.
Regardless of these assurances, the controversy raises questions concerning the dangers related to celebrity-endorsed crypto tasks.
