Hawk Tuah’s Memecoin Collapses 91%, Raises Suspicions of Crypto Market Manipulation

• HAWK memecoin faces 91% drop after launch.
• Token concentration raises suspicions of market manipulation.
• Investors consider legal action after significant losses.

Haliey Welch, known as “Hawk Tuah Girl”, recently launched the HAWK memecoin on the Solana blockchain, generating significant controversies in the cryptocurrency community. The token, which initially reached a market cap of $490 million, suffered a sharp 91% drop in a few hours, raising concerns about unethical practices and potential regulatory implications.

Data from Bubblemaps indicates that a small number of wallets controlled the majority of the available HAWK supply, which has led to criticism of “snipers” — investors who buy large amounts of new meme tokens at launch. This concentration of tokens in a few hands has raised suspicions of market manipulation and questions about the legitimacy of the project.

In response to the allegations, Welch stated on X (formerly Twitter) that neither she nor her team sold any tokens and that no KOLs received free allocations. She explained that they used the decentralized liquidity protocol Meteora to discourage sniping through high fees at the start of the launch. Welch stated, “The team did not sell a token and no KOLs received a free token. We tried to stop sniping as best we could through high fees at the start of the launch on Meteora.”

Despite these explanations, members of the crypto community have expressed skepticism. Influencer Stephen “Coffeezilla” Findeisen criticized the token launch, warning the public about the risks associated with memecoins. He stated: “Memecoins always benefit A) insiders B) trading bots. Don’t be the exit liquidity.”

HAWK’s rapid rise and fall has raised concerns about the viability of celebrity-backed tokens. Observers point out that previous launches of similar tokens on Solana have also failed, with assets losing nearly all of their value within hours or days. This underscores the risks of investing in tokens endorsed by public figures with no proven track record in the crypto space.

Additionally, HAWK’s collapse has sparked outrage on social media, with some users reporting the incident to regulators. Investors say they have filed complaints with the U.S. Securities and Exchange Commission (SEC), while law firms are offering legal support to those who have suffered losses. Burwick Law, for example, has publicly encouraged affected parties to seek assistance in exploring redress options.

Hawk Tuah PRESSED by Investigator Coffeezilla for allegedly scamming millions. pic.twitter.com/evWizLYgj1

— DramaAlert (@DramaAlert) December 5, 2024