A memecoin featuring the likeness of Haliey Welch skyrocketed to a staggering $500 million market capitalization upon its launch on December 4, only to collapse by 90%, sparking allegations of a rug pull.
Haliey Welch, the influencer behind the viral “Hawk Tuah” TikTok sensation, has issued a statement addressing the controversy surrounding the Hawk Tuah (HAWK) memecoin. The token, which leveraged Welch’s brand and gained traction through her social media presence, is now the subject of legal disputes after a dramatic rise and fall in its value left many investors in the red.
Welch Responds to Allegations
In a December 20 post on X, Welch announced her cooperation with legal representatives for affected investors, emphasizing her commitment to addressing the issue responsibly. “I’m fully cooperating with lawyers representing investors,” Welch wrote, adding that she takes the allegations “extremely seriously.”
Source: X
While Welch herself was not named in the lawsuit, crypto users have filed legal action against the token’s creators and collaborators, accusing them of promoting and selling what could be considered an unregistered securities offering. Welch urged those impacted by the HAWK token’s crash to contact the legal team for assistance.
The Rise and Fall of HAWK
Launched on December 4, the HAWK token rode a wave of hype, climbing to a market capitalization of $500 million within days. However, the token’s value plunged by 90% shortly thereafter, fueling accusations of a rug pull—a scheme where project insiders or early investors manipulate the price and abandon the project, leaving retail investors with losses. Blockchain data revealed that a single wallet purchased around 18% of the token’s supply shortly after the launch and cashed out over $1 million in profit, raising further suspicion of foul play.
Many investors who bought into the token during its peak reported devastating losses. Welch’s social media promotion of the token and its branding, tied closely to her “Hawk Tuah” persona, placed her in the spotlight despite her claims of limited involvement with the project’s management.
From TikTok Fame to Crypto Controversy
Welch became an internet sensation in June after a viral TikTok clip earned her the nickname “Hawk Tuah.” Capitalizing on her newfound fame, Welch ventured into the world of memecoins, lending her image and brand to the HAWK token. The project initially drew attention for its comedic roots, but the subsequent collapse has shifted the narrative toward accusations of fraud.
Prominent crypto investigator Coffeezilla and others have scrutinized the project, amplifying concerns about influencer-driven token promotions. While Welch has distanced herself from the token’s operations, questions remain about her role and whether she unknowingly enabled the alleged scheme.
What’s Next for HAWK and Its Investors?
The legal implications for Welch and the HAWK project’s founders remain uncertain. Under current regulations, the U.S. Securities and Exchange Commission (SEC) has classified most tokens as securities, potentially subjecting the creators of HAWK to scrutiny. However, with an upcoming shift in SEC leadership to Republican control in January, regulatory priorities could evolve.
For now, Welch has pledged to assist in resolving the situation while maintaining her innocence. The fallout from the HAWK token’s implosion serves as a cautionary tale for the risks associated with influencer-led crypto promotions—a space that continues to blur the lines between entertainment and financial responsibility.
As the story unfolds, the focus remains on whether justice will be served for the investors left holding the bag in this high-profile memecoin controversy.
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