Top line
Haliey Welch, the 22-year-old who rose to internet fame this summer thanks to her viral TikTok video “hawk tuah,” launched her own memecoin in her latest bizarre career move, only for its value to plummet almost immediately.
Welch rose to fame over the summer for her viral TikTok video “Hawk Tuah.” (Photo by Michael … (+)
Key facts
Welch launched the coin Hawk Tuah, widely considered to be a memecoinor a form of cryptocurrency typically created for entertainment purposes – on the Solana blockchain on Wednesday evening.
Welch’s coin quickly reached a market cap of nearly $500 million before immediately falling 95% to $25 million on Thursday afternoon, according to DexScreener data.
The coin’s price Thursday afternoon after 4 p.m. EST is $0.002439, down from a high of $0.04916 Wednesday evening, according to DexScreener.
The chaotic launch appears to have resulted in big losses for some traders.
Coffeezilla, a crypto YouTuber with over 3 million subscribers whose real name is Stephen Findeisen, said in a statement tense X space conversation with Welch and his team, the Hawk Tuah deployment was “one of the most miserable and horrible launches I have ever seen”, accusing Welch and his team of insider trading, which they denied.
CoinTelegraph reported that approximately 80% to 90% of Hawk Tuah’s supply was controlled by insiders or sharpshooters – or entities that purchase large quantities of a coin upon its launch – citing however blockchain data from Bubblemaps and DexScreener. Welch said in an article on X, his team hadn’t sold any tokens and they “tried to stop the snipers as best we could.”
Forbes has reached out to Welch’s management for comment.
Tangent
Memecoins are cryptocurrencies that attempt to capitalize on popular social media memes, including the popular Dogecoin and Pepe Coin. Memecoins, however, are considered very volatile and risky for crypto investors as they depend on fluctuating social media trends.
Could Welch’s Memecoin Launch Have Legal Repercussions?
After the Hawk Tuah piece sparked backlash on social media, Burwick Lawa cryptocurrency company, posted on X urging people who have lost money to memecoin to contact us to “learn more about your legal rights.” It is unclear, however, whether the accident will have legal consequences, and there is no clear evidence of wrongdoing or illegality. Some critics have speculated – without evidence – that Welch’s play was launched as part of a “pump and dump“, in which the value of an asset, including a cryptocurrency, is rapidly inflated and then sold, causing a collapse in value. CFTC first cracked down on crypto pumps and dumps in March 2021, charging two people with multiple counts of fraud for misleading crypto investors and making more than $2 million in one of these schemes.
Key context
Welch rose to internet fame over the summer after a street interviewer filmed her for a TikTok video and asked her “moving in bed makes a man crazy,” to which Welch responded: “you gotta give him that ‘hawk tuah’.’ » The video took off in June, prompting Welch to quickly release products. She organized a popular social media presence, joining Instagram in July and posting photos with celebrities such as Matt Rife and JoJo Siwa. Country star Zach Bryan on stage at a concert in June and threw out the first pitch at a New York Mets game in August. Welch launched a podcast, “Talk Tuah,” in September, which quickly gained traction. in popularity and at one point ranked as the fifth most popular podcast in Spotify’s daily charts, behind only Joe Rogan’s show. The podcast is owned by boxer and social media personality Jake Paul’s company Betr. She welcomed guests including Wiz Khalifa, Marc Cuban And Brooke Schofield on his podcast. Last month, Welch launched an AI-powered dating app, “Cookie tools”, which includes a chatbot that helps start a conversation, dating app profile advice, and date outfit recommendations.
Large number
2.6 million. That’s Welch’s Instagram follower count, indicating his rapid rise to internet fame.
Further reading
Memecoin Hawk Tuah Loses 90% Amid Backlash Over Controversial Launch (CoinTelegraph)
‘Hawk Tuah’ Creator’s Podcast Ranks #5 on Spotify: Here’s How She Kept the Meme Up for Months (Forbes)