Hawk Tuah Girl claims no tokens sold as memecoin launch sparks crypto community backlash
Haliey Welch, a viral internet personality known as the Hawk Tuah Girl, finds herself embroiled in controversy following the launch of her memecoin HAWK on the Solana blockchain.
The tokens rapid rise and fall have drawn sharp criticism from the crypto community, with accusations of unethical practices that could attract regulatory attraction.
HAWK memecoin
On Dec. 4, the memecoin debuted on the Solana blockchain to much acclaim and, in a matter of minutes, surged to a $500 million market cap, only to nosedive to as low as $60 million shortly after.
This volatile performance left many investors fuming as speculation grew that the token might have been designed for a pump-and-dump schemea tactic in which malicious developers profit from artificially inflated prices before abandoning the project.
Blockchain analysis from Bubblemaps showed further concerning details about HAWKs launch. According to the firm, nearly 96% of the tokens supply was reportedly controlled by insider wallets. Such concentrated holdings are often associated with market manipulation, further fueling skepticism about the tokens legitimacy.
In an X Spaces hosted by the projects team, on-chain investigator Coffeezilla slammed Welch and her team for insider trading. He stated:
You guys generated over a million dollars in fees, while your fans got rug pulled. There were snipers, but there was also insider trading directly linked to your creator accounts.
The HAWK situation was reminiscent of earlier celebrity token launches on Solana that failed. Earlier this year, multiple artists and influencers issued tokens during a brief trend, but many of these assets lost almost all their value within hours and days.
Critics argue that the HAWK token has followed a similar trajectory, highlighting the risks of investing in unproven celebrity-endorsed tokens.
Legal fallout
The tokens collapse has triggered outrage across social media, with some users reporting the incident to regulatory authorities.
Meanwhile, several investors claim to have filed complaints with the US Securities and Exchange Commission (SEC), while law firms offer legal support to those who incurred losses. One firm, Burwick Law, publicly encouraged affected parties to come forward and explore their options for recourse.
Adding to the uproar, crypto community members created a satirical token called Straight Tuah Prison, insinuating that Welch should face accountability for the tokens failure. These developments suggest potential legal challenges for Welch and her team shortly.
Welchs response
In her defense, Welch denied any wrongdoing in a Dec. 5 post on X (formerly Twitter), stating that her team had not sold tokens and that no influential figures had received free allocations.
Welch explained that they launched HAWK using Meteora, a decentralized liquidity protocol, to deter snipers. She wrote:
Team hasnt sold one token and not 1 KOL was given 1 free token We tried to stop snipers as best we could through high fees in the start of launch.
Over Here, a platform collaborating with Welch on the launch, echoed her statements. They clarified that the tokenomics were designed with transparency and that Welchs team sold no tokens.
They also noted that her teams 10% token allocation is locked for one year and subject to a three-year vesting schedule.
Despite these assurances, the controversy raises questions about the risks associated with celebrity-endorsed crypto projects.
The post Hawk Tuah Girl claims no tokens sold as memecoin launch sparks crypto community backlash appeared first on CryptoSlate.
Text source: CryptoSlate
