The meme coin Hawk Tuah, launched by popular blogger Haliey Welch, lost 90% of its value within three hours after its release on December 4. The token's market capitalization peaked at $490 million but dropped to $41.7 million, according to Dexscreener data. The community blames the project's team for this dramatic loss.
Allegations of Insider Trading
According to social media users, the sharp decline in the token's value may be linked to market manipulation. Analysts observed that 80-90% of the HAWK supply was initially controlled by "snipers" and accounts with insider information about the launch.
This is supported by data from RugCheck, which shows that the top 10 holders controlled over 70% of the token's supply.
Welch denied these accusations, stating that her team did not sell or distribute tokens to influencers.
"We did everything we could to minimize the risk of sniper attacks by setting high fees at the launch on the Meteora platform," she wrote on social media on December 5.
However, users pointed out that if the team truly wanted to prevent snipers, they would not have announced the project launch a week earlier.
"Maybe you weren't the organizer, but you clearly allowed well-known scammers to run it for you. Most of us knew who was involved and knew this would happen. Hire a good lawyer if you haven't already," commented a user named CryptoRyder_.
As part of the investigation, blockchain analysts tracked a wallet that bought 17.5% of the total token supply for $993,000 in Wrapped Solana (WSOL) just seconds after the launch. This wallet later sold 135.8 million tokens, earning a profit of $1.3 million. It is unclear if this wallet is connected to the project team.
Investor Losses
Following the token's crash, many investors reported significant losses. One user claimed to have lost $43,000 investing in HAWK. Another investor exchanged $1.4 million worth of another meme coin, MOODENG, for HAWK, losing over $1.3 million.
According to a user named scooter, snipers and insiders made at least $3 million from this scheme.
After a nearly 90% drop, the token's value had slightly recovered at the time of writing, trading around $0.0036. In the past hour, it rose by nearly 10%, with a market capitalization of $36 million.
Potential Legal Consequences
Some users have started filing complaints with the U.S. Securities and Exchange Commission (SEC) regarding the project. Law firms, such as Burwick Law, are already offering their services to the affected investors.
"If you lost money on HAWK, contact us to learn about your rights," the firm's statement said.
The New Wave of Meme Coins
The launch of the HAWK meme coin and its rapid 90% drop did not go unnoticed in the crypto community. In response to this incident, new tokens have emerged, each reacting differently. Some projects aim to highlight their independence and criticize the original HAWK as a scam, while others simply replicate its concept.
- Straight Tuah Prison (TUAH). This token has risen 12% in the last 24 hours, reaching $0.0097. It was created to express support for investors and call for accountability from the creators of HAWK.
- Haaley Welsh (HEWK TUEH). A parody token of the original HAWK. It fell nearly 13% over 24 hours to $0.000007104.
Among new tokens, there is a trend: projects condemning HAWK and focusing on investor protection are seeing growth, while simple copies are heading down with the original.
It is still unclear how the investigation will end, but the amount defrauded from investors is significant. Calls for SEC intervention and other appeals to regulatory bodies may be heard.
It is worth noting that a schoolboy previously scammed users for $13,000. However, the community, despite dissatisfaction, did not severely punish him, citing his age. Unlike that case, the situation with HAWK and its creators may develop very differently. What do you think?
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
