Emily Walker
On-chain investigator Coffeezilla has recently accused influencer Hailey Welch and the team behind the HAWK memecoin of deceiving her followers during their token launch. The project has come under fire after the cryptocurrency’s value plummeted by 94% just hours post-launch, leaving backers at a loss.
HAWK Memecoin: From Hype to Plunge
The crypto community criticized Hailey Welch, known as the ‘Hawk Tuah’ girl, following the launch of her HAWK (HAWK) memecoin on Wednesday night. Welch gained fame after a brief video clip featuring her catchphrase went viral this year.
Welch has since developed a significant online presence and embarked on various ventures, such as a dating advice app and the Talk Tuah Podcast. In October, she shared an image referencing multiple memecoins, signaling an upcoming launch.
On November 26, Welch announced a collaboration with the Web3 platform overHere, unveiling plans for the HAWK memecoin due on December 4, emphasizing it was set to revolutionize the crypto domain.
Upon launching on Wednesday afternoon, the token’s market cap soared to about $500 million, only to crash by 88% shortly after due to early holders liquidating their assets as the price peaked.
Are Influencers Exploiting Crypto?
Following the sudden crash, investors and market analysts accused Welch and the HAWK team of engaging in insider trading and effectively conducting a rug-pull—many of the investors were her fans, unfamiliar with crypto risks.
In response to the criticism, Welch shared the token’s distribution plan, indicating only a fraction (2%) was allocated for public distribution while a significant portion (17%) was unlocked at launch, allegedly benefiting insider wallets.
Analysis from Bubblemaps reveals that a small group of wallets controlled approximately 80% of the token supply. Despite claims that efforts were made to prevent early buyers, some addresses acquired a substantial amount of tokens within minutes of the launch.
One of these wallets was able to capture 17.5% of the total supply and subsequently sold it for around $1.3 million in profit, while many investors reported losing significant amounts within just ten minutes.
Although Welch and her team denied any wrongdoing, on-chain analyses indicate otherwise. During an X Space discussion, Coffeezilla confronted the team about the million-dollar transaction fees that coincided with the investor losses, attributing the crash to potential insider trading rather than just opportunistic buyers.
The team attempted to dismiss the allegations, claiming that they had no reason to cheat their followers for a mere $50,000. Additionally, they mentioned the establishment of a Foundation for the project in the Cayman Islands, which required substantial financial backing.
Coffeezilla criticized the launch as the “most horrible” he had seen, labeling the tokenomics as fundamentally flawed and suggesting it could be a scam. He pressed the team for clarity regarding the almost $16.69 million raised in the pre-sale.
After being questioned about their compensation from the token’s proceeds, Welch eventually stated she was “going to sleep,” as the HAWK memecoin’s value continued to plunge, now standing at a mere $30 million market cap after falling over 94% from its highest point.
