Viral Meme Star Faces Backlash as “Hawk” Cryptocurrency Crashes

Haliey Welch, the internet sensation behind the viral “Hawk Tuah” meme, is at the center of a growing controversy following the catastrophic launch of her cryptocurrency, Hawk. Initially soaring to a market cap of $490 million just after its debut, the coin experienced a dramatic collapse, losing over 95% of its value within minutes.

The sharp decline has sparked allegations of a “pump and dump” scheme, with critics accusing Welch and her team of artificially inflating the coin’s value before cashing out. Leading the charge is popular YouTube cryptocurrency investigator Coffeezilla, who claims Welch’s team manipulated the market for profit at the expense of her loyal fans.

From Boom to Bust

Hawk launched on the Solana blockchain on Wednesday at 22:00 GMT. Within minutes, the coin’s value skyrocketed to nearly half a billion dollars in market cap. But this meteoric rise was short-lived; just 20 minutes later, its value plummeted to around $60 million.

Welch had promoted the cryptocurrency heavily on her social media platforms, even distributing free tokens to fans ahead of the launch. However, many of those fans now feel betrayed, alleging they were misled into investing in what turned out to be a “rug pull” – a scam in which the creators of a cryptocurrency disappear with investors’ funds after launch.

Denials and Defenses

In a post on X (formerly Twitter), Welch denied any wrongdoing, claiming neither she nor her team sold any tokens they owned. Her explanation pointed to efforts to prevent “snipers” – traders using automated tools to exploit price gaps – by imposing higher transaction fees on one exchange.

However, a community note attached to Welch’s post disputes her defense, asserting her team had been offloading Hawk coins from the moment the currency went live. Coffeezilla, whose real name is Stephen Findeisen, further alleged that insiders received an unfair advantage, leaving ordinary investors in the lurch.

“Unfortunately, situations like this don’t target experienced crypto investors,” Findeisen stated in a video viewed over 1.4 million times. “They’re going after fans, people new to the crypto space, who trust the influencer they admire.”

The Rise and Risk of Meme Coins

Meme coins like Hawk have surged in popularity, offering an affordable and playful entry point into the world of cryptocurrency. But despite their appeal, these tokens often come with significant risks, including lack of investor protections and susceptibility to manipulation.

Fans and critics alike have called for greater accountability from Welch and her team. Some accuse the cryptocurrency’s creators, OverHere, of using Welch’s viral fame to bait investors unfamiliar with the volatile nature of the crypto market.

OverHere issued a statement on X, refuting the claims and maintaining that “Haliey’s team has sold absolutely no tokens whatsoever.”

A Divided Community

While some fans remain loyal to Welch, others are demanding answers. “I trusted her,” one disappointed investor wrote online. “I thought this was an opportunity to be part of something fun and exciting, but it feels like I was scammed.”

For now, Welch faces mounting pressure to address the allegations directly and restore the trust of her fans and investors. The incident also serves as a stark reminder of the inherent risks in cryptocurrency, particularly for those lured by the appeal of meme coins without understanding the potential dangers.

As the crypto space continues to grow, so does the need for transparency and regulation to protect investors from similar pitfalls. For Welch and her team, the fallout from Hawk’s spectacular collapse may be only the beginning of their challenges.

UCW Newswire