Hailey Welch, known as the “Hawk Tuah Girl,” has come under fire after the launch of her cryptocurrency, $HAWK, resulted in financial losses for her fans. The memecoin, introduced on December 4, experienced a massive rise followed by a catastrophic crash, leaving many investors claiming they were victims of a “rug pull.” Some investors have even filed a case against Hailey Welch.
$HAWK Coin Crashes Minutes After Launch
Welch, who became an internet sensation for her viral catchphrase “hawk tuah spit on that thang,” capitalized on her fame by launching a cryptocurrency on the Solana blockchain. The token quickly drew attention from her fans, soaring to a market cap of $490 million within minutes of its launch. However, this success was short-lived as the coin’s value plummeted by over 90%, dropping to just $41 million in less than 20 minutes.
Hawk Tuah memecoin dropped 91% in less than three hours. Source: DexScreenerInvestors, many of whom were devoted fans, were left reeling from the sudden collapse. Individuals flooded social media with posts sharing their losses. One fan claimed they invested $35,000, only to see its value shrink to $2,000 in just ten minutes. Another alleged they had used their children’s college fund to buy the coin.
Investors Accuse Hailey Welch of Cryptocurrency ‘Rug Pull’
Critics accused Welch of orchestrating a “rug pull,” a common crypto scam where developers sell off large amounts of their token, causing its value to crash. On-chain data revealed that a few wallets, suspected to be linked to insiders, controlled up to 90% of $HAWK’s supply at launch. These wallets reportedly sold off significant amounts of tokens, profiting millions while ordinary investors faced heavy losses.
One wallet reportedly purchased 17.5% of the token’s supply for approximately $993,000 and later sold it for a profit of $1.3 million. Observers also noted that some buyers had converted other cryptocurrencies, like MOODENG, into $HAWK, only to lose substantial amounts during the crash.
Hawk Tuah Girl Denies Selling Tokens
In response to the backlash, Welch denied any wrongdoing. She took to social media, claiming that neither she nor her team had sold tokens during the launch.
She said her team initially implemented high transaction fees to deter snipers who buy large amounts of tokens at launch but later reduced the fees.
Despite Welch’s assurances, many investors remain unconvinced. Social media users pointed to evidence of insider trading and questioned Welch’s transparency regarding the coin’s distribution.
Legal Complaints Filed Against Hawk Tuah Girl
The fallout from the $HAWK launch has led some investors to take legal action. Some investors have reportedly filed case with the U.S. Securities and Exchange Commission (SEC), alleging fraud and misconduct. Legal firms have also begun advertising services for those who lost money in the crash. Burwick Law, for instance, has urged affected investors to contact their firm to explore legal options.
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