Hailey Welch, known for her viral "Hawk Tuah" catchphrase, launched the HAWK memecoin on December 4, promising to revolutionize the crypto space. Despite an initial market capitalization surge to $500 million, the coin plummeted 94% within 12 hours, leading to accusations of insider trading and scamming from on-chain investigator Coffeezilla. Welch denied these allegations, asserting that her team did not engage in any token sales or grant free tokens to influencers.
As the controversy escalates, law firms are now soliciting investors who incurred losses to join potential lawsuits against Welch and her team.
As the controversy escalates, law firms are now soliciting investors who incurred losses to join potential lawsuits against Welch and her team.
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00:00On-chain investigator CoffeeZilla has accused Hailey Welch and the Hawk meme coin team of
00:04scamming her fans.
00:06According to Bitcoinist, Welch's new token launch faced severe backlash after its value
00:10plummeted by 94 percent within 12 hours, leaving investors empty-handed.
00:16Hailey Welch is best known as a Hawktaw girl after going viral for saying the catchphrase
00:20during a street interview conducted by Tim & V TV.
00:24Since her viral moment, Welch has launched various projects, including a dating advice
00:28app, and the TalkTaw podcast.
00:30In October, Hailey Welch hinted at the possible launch of Hawk by posting on X, formerly Twitter,
00:35"'Good morning, X. I heard it's a meme supercycle."
00:38James Zafar, a well-regarded analyst at Bloomberg Intelligence, replied, only a matter of time
00:43before she launches a meme coin.
00:45A meme coin is a cryptocurrency named after characters, individuals, animals, artwork,
00:50or other elements, aiming to be humorous and lighthearted while attracting users by promising
00:55a fun community.
00:56Other meme coins include Dogecoin, popularized by Elon Musk, which officially launched on
01:01December 6, 2013, and attracted over a million visitors to the website in the first 30 days.
01:07On November 26, Welch announced a partnership with the Web3 platform OverHere to launch
01:12the Hawk meme coin on December 4, claiming it was set to redefine the crypto space.
01:17Hawk was officially launched at 5 p.m. Eastern on December 4, where its market capitalization
01:22rapidly soared to an impressive $500 million, but plummeted 88 percent within minutes as
01:27top holders dumped their tokens at the peak, causing a massive nosedive.
01:32On-chain investigator CoffeeZilla accused Welch and her team of insider trading and
01:37rug-pulling on X, saying,
01:38"'You guys generated over a million dollars in fees while your fans got rug-pulled.
01:43There were snipers, but there was also insider trading directly linked to your creator accounts.'"
01:48Welch has since posted on X with a response stating,
01:51"'We tried to stop snipers as best as we could through high fees,' which Newsweek
01:56says has since been dropped."
01:58Welch continued her claim by saying,
02:00"'The team hasn't sold one token, and not one influencer has given any free tokens.'"
02:05Welch's post has now been viewed over 4.8 million times, with many calling her out on
02:09what seems to allegedly be misinformation on her side, with one X user saying she should
02:14talk to a lawyer.
02:16Law firms are now soliciting clients who incurred losses from the token, with Burek Law urging
02:20affected investors to reach out to them if you lost money on Hawk.