The launch of social media personality Haliey Welch’s memecoin, “Hawk Tuah” (HAWK), has turned sour after a dramatic price surge and subsequent collapse within hours. The incident has sparked outrage among investors and raised questions about potential legal ramifications.
HAWK, launched on December 4th at 10:00 PM UTC, briefly achieved a staggering market cap of $490 million. However, the euphoria was short-lived. Within three hours, the token’s value plummeted by a staggering 91%, reaching a valuation of just $41.7 million at the time of writing (according to DexScreener data).
This rapid downturn has fueled accusations of manipulation. Critics allege the launch was orchestrated by “snipers” and “insider wallets.” Snipers are entities that exploit loopholes to buy large quantities of a token at launch, driving up the price before quickly selling for a profit. Insider wallets, on the other hand, are those controlled by the project’s team, who could potentially manipulate the market by selling their own tokens.
Data from Bubblemaps and Dexscreener suggests that a significant portion of HAWK’s supply (estimated between 80% and 90%) was concentrated in these types of wallets at launch. This raises concerns about the project’s legitimacy.
Welch has vehemently denied any wrongdoing, claiming on X (a social media platform) that neither she nor her team engaged in insider sales. She further stated that “key opinion leaders” (influencers who might promote the coin) were not given free tokens, and the launch platform (Meteora) was chosen to specifically mitigate sniping risks.
Copy and pasting:
— Haliey Welch (@HalieyWelchX) December 4, 2024
Hawkanomics:
Team hasn’t sold one token and not 1 KOL was given 1 free token
We tried to stop snipers as best we could through high fee’s in the start of launch on @MeteoraAG
Fee’s have now been dropped pic.twitter.com/E7xN9VmCrx
However, data from Solana block explorer Solscanner tells a different story. It reveals that one wallet managed to acquire a significant amount (17.5%) of HAWK’s supply for a mere $993,000 just seconds after launch. This wallet then proceeded to sell a large portion of the tokens within hours, profiting over $1.3 million.
Social media platforms are rife with tales of investor losses. One user reported losing $43,000 on the venture, while another claimed to have swapped a different memecoin worth $1.4 million for HAWK, losing almost the entire investment.
i really lost $43k apeing in “hawk tuah” coin pic.twitter.com/9j4frI37p8
— lynk (@lynk0x) December 5, 2024
Beyond investor outrage, legal repercussions may be on the horizon. Some observers believe the launch could attract scrutiny from regulatory bodies. Users on X are claiming to have filed complaints with the SEC (Securities and Exchange Commission), while law firms are advertising their services to those who lost money. One such firm, Burwick Law, has explicitly requested that HAWK investors contact them to explore legal options.
If you lost money on $HAWK, contact our firm to learn about your legal rights.
— Burwick Law (@BurwickLaw) December 5, 2024
Our firm represents thousands of nft and token investors in securities matters.
This is attorney advertising.
The HAWK Tuah saga serves as a cautionary tale for investors in the volatile world of memecoins. It underscores the importance of thorough due diligence before investing in any cryptocurrency project, particularly those launched by celebrities or influencers.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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