his week, internet personality Hailey Welch, popularly known as the Hawk Tuah Girl, landed herself in a cryptocurrency scandal after launching her HAWK memecoin on the Solana blockchain. The token has skyrocketed and crashed in a relatively short period of time, which has earned it a lot of criticism from the crypto world.
High Growth and Fast Demise
The HAWK token started on December 4th and quickly rose to a $500 million market cap before retreating to $60 million within a few minutes. , the use of analytical tools showed that almost 96 percent of all tokens belonged to insider wallets, which drew concerns about manipulations in the market.
Community and Legal Pushback
There is considerable anger over the token’s decline, investor complaints have been lodged to regulators. Welch’s team was accused of insider trading by a famous crypto investigator Coffeezilla stating that they made more than a million dollars in fees while investors perished.
Welch's Defense
To the accusations, Welch dismissed any wrong-doing on his part in the management of the GE accounts. She said that her team did not sell a single token, and no prominent personalities benefited from free allocations. The project partners stressed the token’s openness and a dedicated amount for Welch’s team to maintain a lock.
Broader Implications
The HAWK token issue demonstrates that celebrity promotion remains a prospect to associated with various concerns regarding cryptocurrency projects. Some legal firms have arrived at the position to provide assistance to investors who have been impacted and the crypto space is closely observing the launch.
The mania for creating memecoins continues
The Hawk Tuah Girl experience is an example of memecoin failure and should act as a warning about the crypto market, especially celebrity launched tokens.
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