Haliey Welch’s Hawk Tuah memecoin, a product of her viral social media fame, has garnered criticism upon its debut. The token, which debuted on December 4, experienced an incredible surge, reaching a market capitalization of approximately $490 million. However, it quickly fell by 90%, sparking great outrage among investors.
The memecoin’s quick collapse has been ascribed to claims of insider manipulation and “sniping”—in which particular wallets were able to purchase huge amounts of the token early on, giving them an unfair advantage. Data reveal that a few wallets controlled up to 80-90% of Hawk Tuah’s initial supply, raising concerns about potential market manipulation.
The designer of the coin, Haliey Welch, has categorically denied any involvement in insider trading. In a social media post, she highlighted that neither she nor her team sold tokens or provided free coins to influencers. Although the launch, utilizing a decentralized liquidity protocol, aimed to alleviate these concerns, some individuals still exploited the situation. One wallet apparently purchased 17.5% of the total supply shortly after introduction and then sold it for a profit of more than $1 million.
As the coin’s value plunged, many investors flocked to social media to vent their dissatisfaction, with some claiming to have lost large sums of money. Legal experts anticipate regulatory scrutiny due to this incident, as some investors have reportedly lodged complaints with the SEC regarding the handling of the launch.
Despite Welch’s efforts to defend the launch, the issue has highlighted the hazards and volatility of the memecoin market, raising concerns about the future of such digital assets and the potential legal ramifications for its founders.
