Hawk Tuah Girl Meme Coin Crashes: What's Next for Holders?

06-12-2024

Hawk Tuah Girl Coin Faces Scandal: Was It a Pump-and-Dump Scheme?

The Rise and Fall of HAWK Memecoin

Hailey Welch, famously known as the "Hawk Tuah Girl," launched her much-anticipated memecoin, $HAWK, on the Solana blockchain at 10:00 pm UTC on December 4.

Initially, the coin surged to a market cap of $500 million, only to plummet to $60 million within 20 minutes. This sharp decline left many investors reeling from heavy losses, with some claiming to have lost their life savings.

The sudden collapse has led to widespread accusations of Welch orchestrating a "rug pull" and running a pump-and-dump scheme, leaving the 21-year-old internet personality embroiled in controversy.

Shocking On-Chain Insights: $HAWK's Alarming Statistics

According to DEXScreener, $HAWK debuted at $0.005492, skyrocketed to $0.04916, and then nosedived by over 90%. On-chain data highlights that certain traders, known as "snipers," exploited the launch, reaping significant profits. For instance, one wallet alone sold over 135 million $HAWK tokens, making $1.3 million in a single trade.

On-Chain Insights

Further investigations by Solscanner revealed that insiders and snipers controlled 80-90% of the coin's supply. One wallet purchased 17.5% of the total supply for $993,000 and cashed out just 90 minutes later for a hefty profit.

Legal Trouble Looms for Hailey Welch

The crash has spurred legal scrutiny, with several investors reportedly filing complaints with the SEC against Welch. Users on X (formerly Twitter) have alleged insider trading, citing that 96% of the $HAWK supply is concentrated among 10 interconnected wallets. Community notes have flagged Welch’s social media posts, further fueling the controversy.

What’s Next for $HAWK?

While some investors demand accountability, others anticipate potential regulatory action against Welch. The dramatic fallout of $HAWK has not only dented investor confidence but also spotlighted the risks associated with memecoins.

The controversy surrounding Hailey Welch and her $HAWK memecoin serves as a cautionary tale for crypto enthusiasts, emphasizing the need for vigilance in the volatile world of cryptocurrency.

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About the Author Lokesh Gupta

Expertise coingabbar.com

Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.