Hailey Welch Faces Allegations of Insider Trading Amid $HAWK Meme Coin Crash
3 min read
Michael Tullberg/Getty Images
Hailey Welch, famously dubbed the “Hawk Tuah Girl” after her viral rise to fame in mid-2024, has found herself embroiled in controversy over her cryptocurrency project, $HAWK. Launched on the Solana blockchain on December 4, 2024, the meme coin experienced a dramatic surge and equally steep crash, leading to allegations of insider trading and market manipulation.
The Rise and Fall of $HAWK
$HAWK debuted at $0.005492 and skyrocketed by over 900% within hours, reaching a market cap of $490 million. However, the rapid ascent was short-lived, as the coin’s value plummeted by 91%, leaving it with a market cap of just $60 million, according to The Independent. The sudden collapse has led to accusations of a “pump-and-dump” scheme.
Haliey Welch (Hawk Tuah Girl) is currently receiving mass amounts of back lash after her newly launched meme coin sky rocketed to $500M before crashing to $60M in 20 minutes pic.twitter.com/ewDaV3fZjg
— ryan 🤿 (@scubaryan_) December 5, 2024
Cryptocurrency experts and investors noted unusual activity surrounding the launch. Insider wallets and “snipers” allegedly purchased large amounts of the coin early on, only to sell for significant profits. For instance, one wallet reportedly bought 17.5% of the total supply, valued at $993,000, and sold it for $1.3 million, as highlighted by Cointelegraph
Accusations of Insider Trading
Critics argue that Hailey Welch and her team orchestrated a pump-and-dump scheme, a tactic where early adopters hype a cryptocurrency, inflate its value, and then sell off their holdings, leaving everyday investors with devalued tokens. Social media sleuths claim the $HAWK team and insiders began selling tokens immediately after launch, undermining investor confidence.
Popular YouTuber Coffeezilla, known for exposing scams, has been vocal in pressing Welch for transparency. In response, Hailey Welch denied the allegations on X (formerly Twitter), stating:
“Our team hasn’t sold one token and not 1 KOL [Key Opinion Leader] was given 1 free token.”
She explained that high launch fees were initially implemented to prevent sniping but were later reduced. Her manager, Jonnie Forster, further clarified that Welch owns 10% of $HAWK’s supply but is contractually barred from selling for a year.
Last night, Hawk Tuah tried sleeping away the backlash. 😭😭
— DramaAlert (@DramaAlert) December 5, 2024
Rise and shine Hailey, the internet still needs answers! pic.twitter.com/oR5vwT5PVb
Legal Challenges and Investor Reactions
The fallout has reached legal authorities. According to Coinspeaker, an investor has reportedly filed a complaint with the U.S. Securities and Exchange Commission (SEC), citing significant losses due to the coin’s volatility. Law firms have also contacted affected investors, exploring potential legal action against Welch and her team.
The case underscores the risks of meme coins, which often lack inherent utility and are prone to speculation and manipulation.
LAW FIRMS ARE LOOKING INTO SUING HAWK TUAH FOR SCAMMING MILLION ALLEGEDLY! pic.twitter.com/09joUb9zxq
— DramaAlert (@DramaAlert) December 5, 2024
From Viral Fame to Crypto Controversy
Born on July 13, 2002, in Tennessee, Welch became an internet sensation after a humorous street interview at Nashville’s CMA Fest in June 2024. Her quirky “hawk tuah” phrase and spitting gesture captured the imagination of social media users. She capitalized on her newfound fame with a podcast, merchandise, and even an AI-powered dating advice app, Pookie Tools.
However, her meteoric rise has now taken a darker turn as the $HAWK controversy unfolds. While Hailey Welch has denied any wrongdoing and continues to defend her actions, the backlash raises questions about the volatile intersection of celebrity influence and cryptocurrency ventures. As investigations progress, investors and fans alike will be watching closely to see how this story develops.
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
Shivam Kumar
Hi, I'm Shivam Kumar. I'm pursuing Journalism honors from the IP University. I love the skill of writing and looking forward to learn more of it. Also I love traveling and experiencing new things every day....
