Online star Haliey Welch, known for her viral "Hawk Tuah" meme, is under fire after her newly launched cryptocurrency experienced a dramatic drop in value. The "Hawk" digital coin initially reached a market cap of $490 million shortly after its launch but plummeted by over 95% within hours, leading to accusations of a potential scam.
The "Hawk" cryptocurrency was launched on the Solana blockchain at approximately 22:00 GMT on Wednesday. Initially, it garnered significant attention, with its market capitalization skyrocketing to $490 million. However, this excitement was short-lived as the value of the coin fell sharply to around $60 million just 20 minutes later.
This drastic decline has raised eyebrows and led to accusations from fans and investors who feel misled. Many have suggested that the launch was a "rug pull," a term used in the cryptocurrency world to describe a situation where promoters attract buyers only to abandon the project and take off with the funds raised.
Critics have been vocal about their concerns regarding the launch. Notably, YouTube cryptocurrency investigator Coffeezilla, whose real name is Stephen Findeisen, has accused Welch of orchestrating a "pump and dump" scheme. This involves artificially inflating the price of a cryptocurrency before selling it off for profit, leaving investors with worthless tokens.
In a video that has garnered over 1.4 million views, Coffeezilla stated, "Unfortunately with situations like this, they're not targeting crypto bros; they're mostly targeting actual fans who have never been involved in the crypto space before." He further claimed that Welch's team profited from what he described as a "rug pull."
In response to the allegations, Welch took to social media to defend her actions. She stated, "Team hasn't sold one token," in a post on X (formerly Twitter). She also emphasized that no key opinion leaders (KOLs) were gifted free tokens, which is often a tactic used to create hype around a cryptocurrency.
Despite her claims, a community note on her post contests her explanation, asserting that her team had been selling their Hawk coins since the launch. Welch also mentioned that her team attempted to prevent so-called "snipers"—traders who buy and sell cryptocurrencies quickly to capitalize on price fluctuations—by imposing higher fees on one exchange.
The reaction from the community has been mixed, with many expressing feelings of betrayal. Fans who invested in the Hawk coin are now questioning the integrity of the project and the motives behind its launch. The rapid decline in value has left many investors feeling vulnerable and misled.
As the situation unfolds, it remains to be seen how Welch and her team will address the growing concerns and whether they can regain the trust of their supporters. The incident serves as a cautionary tale in the volatile world of cryptocurrency, where the line between innovation and exploitation can often blur.
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