Haliey Welch, known for her viral “Hawk Tuah” catchphrase, has taken her fame to crypto with the launch of HAWK, a memecoin that aims to engage her fan base. However, the debut was marred by controversy and a dramatic 90% price drop within hours of its launch.
The HAWK token, launched on the Solana blockchain, was positioned as a fan-focused initiative to connect Welch’s community through crypto. Despite the ambitious vision and Welch’s insistence that the token was “not a cash grab,” its tumultuous rollout and subsequent plummet have drawn criticism, regulatory scrutiny, and legal threats.
HAWK Soaring Launch, Followed by a Crash
The HAWK token made its market debut on December 4 at 10:00 PM UTC. Within minutes, its market cap soared to $490 million, reflecting excitement from fans and crypto enthusiasts alike. Welch and her team distributed free tokens to fans who supported her merchandise and social media campaigns, a strategy to foster community engagement. However, the buzz was short-lived. By midnight, the token’s valuation had plunged to $41.7 million—a 91% drop.
Crypto analytics revealed troubling insights. Reports indicated that between 80% and 90% of the token’s initial supply was controlled by a combination of insider wallets and opportunistic “snipers” who exploited the launch to amass large holdings. This raised concerns of price manipulation, a claim Welch’s team firmly denies. In a statement on X (formerly Twitter), Welch insisted that neither her team nor affiliated entities sold tokens during the launch, emphasizing efforts to prevent exploitation by deploying the token on the Meteora decentralized liquidity protocol.
interestingly, the post was quickly accompanied by a community note refuting the claims and in fact supporting the allegations made as true.
Several users alleged foul play and filed complaints with the U.S. Securities and Exchange Commission (SEC). Law firms have also started offering services to those who lost money during the token’s rapid downturn.
Navigating Memecoin Risks and Legal Scrutiny
HAWK’s controversial debut is the latest chapter in the volatile world of celebrity-endorsed cryptocurrencies. Welch, a relative newcomer to the crypto industry, has acknowledged her initial skepticism toward digital assets, calling them “a scam” before immersing herself in the space. Her manager, Jonnie Forster, has been vocal about ensuring compliance, citing measures such as Welch’s inability to sell her 10% token stake for a year and the token’s legal backing through a Cayman Islands foundation.
However, the backlash highlights broader concerns. Celebrity-backed tokens often attract regulators due to their speculative nature and potential for misleading promotion. High-profile figures like Kim Kardashian and Floyd Mayweather have previously settled with the SEC over undisclosed compensation for promoting cryptocurrencies. Welch’s claims of ignorance regarding such regulatory actions underscore the potential pitfalls of navigating the complex intersection of fame and finance.
Despite the rocky start, Welch remains optimistic. She views HAWK as a way to deepen fan engagement while warding off scams that exploit her name and likeness. “Launching my own token feels like the perfect next step,” she said in a statement. “It’s not just about creating something meaningful for my fans—it’s about protecting my community.”
HAWK’s Future remains uncertain
Welch’s journey into the crypto world illustrates both the opportunities and challenges of blending internet fame with crypto. While HAWK’s explosive debut and subsequent crash highlight the speculative nature of memecoins, Welch’s focus on community building could provide a foundation for long-term success.
However, overcoming the current backlash will require more than good intentions. Transparency, utility, and trust will be critical for Welch and her team to navigate the turbulent waters of cryptocurrency while adhering to legal and ethical standards. Whether HAWK can recover from its troubled launch remains to be seen, but it serves as a cautionary tale for celebrities venturing into the unpredictable world of digital assets.
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- Source: https://coinweez.com/viral-sensation-haliey-welch-launches-hawk-memecoin-faces-backlash-after-90-price-crash/
