Crypto Quill

Hailey Welch, the woman who gained internet fame as the “Hawk Tuah Girl” after a viral video, is now under scrutiny following the launch of her own cryptocurrency, $HAWK. The coin’s launch on December 4, 2024, sparked excitement when it initially surged in value by 900%. However, the dramatic collapse of the coin’s price soon after has raised red flags, with critics accusing Welch of running a “pump-and-dump” scam.

From Viral Fame to Crypto Launch

Welch’s rise to fame began with a viral social media video in which she shared controversial sex advice, capturing the attention of millions. Her newfound popularity allowed her to leave her job at a spring factory and pivot into podcasting and endorsement deals. This surge in fame led her to enter the world of cryptocurrency, including Bitcoin, eventually culminating in the launch of her own meme coin, $HAWK.

A Promising Start, Then a Sudden Crash

Launched on the Solana blockchain, $HAWK was marketed as a legitimate cryptocurrency project, promising compliance with security laws. The coin experienced a meteoric rise, with its value soaring by 900% in its early trading hours. The market capitalization of $HAWK nearly reached half a billion dollars, drawing in retail investors eager to capitalize on its rapid growth.

However, the excitement was short-lived. Within hours, the value of $HAWK plummeted by approximately 95%, leaving many retail investors with substantial losses. The sudden collapse has fueled accusations that the coin was part of a “pump-and-dump” scheme—a type of scam where crypto projects are promoted aggressively to inflate their prices, only for the developers and insiders to sell off their holdings, profiting at the expense of unsuspecting buyers.

Allegations of Coordinated Manipulation

The accusations against Welch have been bolstered by blockchain data and analyses. A report from Cointelegraph revealed that one wallet managed to acquire 17.5% of the total $HAWK supply, flipping the tokens in just 90 minutes and making a $1.3 million profit. Additionally, blockchain analysis from Bubblemaps showed that 96% of the $HAWK supply was concentrated in a small cluster of wallets, suggesting coordinated efforts to manipulate the coin’s value.

SEC Involvement and Potential Penalties

In the wake of the crash, many investors began filing complaints with the U.S. Securities and Exchange Commission (SEC), questioning whether $HAWK violated securities laws. While it remains unclear what penalties Welch or others involved with the coin might face, the allegations of fraud and market manipulation are serious, and the SEC could potentially launch an investigation into the project.

The Future of $HAWK and Hailey Welch

As the controversy surrounding $HAWK unfolds, Welch’s reputation is facing serious damage. Whether or not the SEC or other regulatory bodies decide to take action remains to be seen. The collapse of $HAWK has drawn attention to the dangers of meme coins and the risks involved in investing in unregulated cryptocurrency projects, especially those driven by viral personalities.