Haliey Welch, famously known as the “Hawk Tuah Girl” after her viral internet fame, entered the cryptocurrency market on December 4, 2024, with the launch of a memecoin called Hawkcoin ($HAWK). Initially, the coin experienced a meteoric rise, reaching a market capitalization of approximately $490 million shortly after its debut. However, this success was short-lived—Hawkcoin’s value plummeted by over 90% within hours, settling at around $41.7 million.
Factors Behind the Crash
Concentration of Holdings
Analysis from platforms like Bubblemaps and Dexscreener revealed that 80% to 90% of Hawkcoin’s supply was controlled by a small group of wallets at launch. This uneven distribution made the coin vulnerable to massive sell-offs by these major holders, triggering a rapid devaluation.
Sniping Activities
“Snipers,” or entities that quickly purchase large amounts of a new token to profit from early trading, played a significant role in Hawkcoin’s crash. One wallet acquired 17.5% of the total supply for approximately $993,000 seconds after the launch. The tokens were sold within 90 minutes for a profit of $1.3 million, further destabilizing the market.
Allegations of Insider Trading
The swift drop in Hawkcoin’s value raised accusations of insider trading. Critics, including prominent crypto journalist Coffeezilla, suggested that insiders had early access to substantial quantities of the coin, enabling them to sell at peak prices. These accusations led to claims that the launch was a “scam,” with tokenomics favoring insiders disproportionately.
Public Backlash and Legal Fallout
The fallout led to widespread public outrage, particularly among investors who suffered losses. Many accused Welch and her team of orchestrating a “pump-and-dump” scheme—a fraudulent tactic where prices are artificially inflated before major stakeholders sell off their holdings, leaving others with devalued assets. Welch denied these allegations, asserting that her team did not sell any tokens during the launch and had implemented high initial transaction fees to deter snipers.
In light of the controversy, law firms such as Burwick Law have offered to assist affected investors in exploring legal recourse, signaling potential legal challenges for Welch and her associates.
The Hawkcoin debacle highlights the risks associated with memecoins and the volatile nature of cryptocurrency markets. It underscores the need for transparency and stronger safeguards during token launches to protect investors and maintain trust. As the situation unfolds, this incident serves as a cautionary tale for creators and investors navigating the unpredictable world of crypto.
