- Hawk Tuah memecoin lost 91% of its value within three hours of launch.
- Allegations of insider wallets controlling 80-90% of supply at launch raised concerns.
- Legal complaints against the project and its team are already being pursued.
The newly launched Hawk Tuah (HAWK) memecoin, created by viral influencer Haliey Welch, faced significant backlash after its value plummeted by 91% within hours of its launch. The token briefly reached a market cap of $490 million on December 4 before falling to $41.7 million, as reported by DexScreener.
This sharp decline followed accusations of insider activities and sniping wallets dominating the token’s supply at launch. Aggregated data from blockchain tools like Bubblemaps revealed that up to 90% of HAWK’s supply was held by interconnected wallets during its debut.
Allegations and Defense
Haliey Welch responded to the controversy, denying any involvement in insider trading or preferential treatment. On December 5, Welch’s team clarified on social media that no tokens were distributed to influencers, and the launch had implemented high initial fees on the Meteora decentralized liquidity protocol to deter snipers.
Despite these measures, blockchain analysis from Solscanner showed one wallet acquired 17.5% of the token supply immediately after launch, investing 4,195 Wrapped Solana (WSOL), valued at nearly $1 million. The same wallet reportedly sold the tokens shortly after, earning a $1.3 million profit in under two hours.
These events left many investors disillusioned. One user reported losing $43,000, while another swapped $1.4 million worth of another memecoin into HAWK, incurring losses exceeding $1.3 million.
Potential Legal Implications
The chaotic launch and subsequent losses for investors have drawn attention from legal professionals and regulators. Several users on X claimed to have filed complaints with the U.S. Securities and Exchange Commission (SEC).
Burwick Law, a firm specializing in crypto-related disputes, publicly invited affected investors to explore their legal options. “If you lost money on $HAWK, contact our firm to learn about your legal rights,” the firm wrote in a December 5 post.
Observers note that regulatory scrutiny could increase in light of these allegations, potentially impacting Welch and her team’s future endeavors in the cryptocurrency space.
