On social media, Hawk Tuah Girl faces ‘pump and dump’ allegations after crypto coin collapses.
After launching HAWK Coin, Haliey Welch faced criticism after many investors suffered massive losses.
Hawk Tuah girl faces allegations after launching hawk coin
She launched HAWK Coin on December 4. Immediately, HAWK Coin quickly soared in value, but soon plummeted, leaving many investors in the lurch
Then, Haliey Welch is facing backlash following the failed launch of her memecoin, $HAWK.
The cryptocurrency crashed by more than 90 percent within hours. Investors are now accusing Welch of a “pump and dump” scheme.
Welch launched $HAWK in an attempt to capitalize on her viral fame.
Speaking to Fortun before the launch, she claimed her memecoin was “not just a cash grab.”
The coin launched on the Solana blockchain with a price of $0.005492. Within hours, its value surged by over 900 percent, reaching a market cap of $490 million.
However, In only three hours, the coin’s value plummeted by 91%, dropping to $41.7 million.
This sharp decline resulted in major losses for investors, leading to widespread frustration and anger from those who had purchased it.
The daramatic deline of $HAWK
The rapid success of $HAWK was short-lived. Its price peaked at $0.00004028 before plummeting by 91 percent, reducing its market cap to just $60 million.
Some speculate that the crash was caused by insider wallets and snipers, who bought large amounts of the coin at launch.
These entities reportedly controlled between 80 and 90 percent of the coin’s total supply.
Additionally, Hawk Tuah Girl faced ‘pump and dump’ allegations
On social media, online critics quickly accused Welch and her team of orchestrating a “pump and dump” scheme.
This involves inflating the value of a coin through heavy promotion and insider trading, only to sell off the coin once its value peaks.
One wallet, according to Cointelegraph, purchased 17.5 percent of the total supply for $993,000, then sold it for $1.3 million just two hours later.
Meanwhile, many called for Hawk Tuah Girl’s imprisonment after launching a cryptocurrency that led to massive losses.
One person said: That’s wat musk is doing for a very long time now, and no one is suing him.
A second wrote: Anybody who invests in crypto deserve to be taken for fools like this.
While a third commented: The irony of “Hawk Tua” girl involved in a “pump and dump” is…. poignant.
Another added: Hailey Welch’s cryptocurrency debacle is a stark reminder that even the most hyped launches can be grounded by the harsh realities of market dynamics. A 90% plummet in value is a brutal lesson in the importance of substance over speculation.
Someone else said: Let’s see, Hawk Tuah fails at cryptocurrency business attempt… yep! I got BINGO!
Welch denies insider trading allegations
In response, Welch denied the accusations. She posted on X/Twitter, stating that her team hadn’t sold a single token. She also denied offering free tokens to key opinion leaders (KOLs). Welch explained that they attempted to prevent snipers by setting high initial fees during the launch, which were later reduced.
Welch’s manager, Jonnie Forster, told Fortune that Welch owns 10 percent of the total supply of $HAWK. However, she is prohibited from selling it for one year. Despite the controversy, Welch insists that the memecoin was meant to be a fun way for her fans to engage, rather than a gamble.