In the ever-changing world of cryptocurrencies, a new phenomenon has emerged: meme coins. These digital currencies, often created as a joke or a social experiment, have attracted the attention of investors and speculators. However, beneath the surface of their humorous origins lies a more sinister reality: that of deception, manipulation and financial loss.
The most recent of these is Hawk Coin, a new crypto coin backed by Hailey Welch of viral fame, better known as “Hawk Tuah Girl”, which has left many people furious and accusing Welch of pulling the rug under the feet of Hawk Coin investors.
The influencer factor
Social media influencers have played a significant role in promoting meme coins, often using their large followings to endorse these digital currencies. However, as we have seen time and time again, these endorsements are often nothing more than a cleverly disguised marketing ploy. “Hawk Tuah girl” is a great example of this as “influencers” attempt to monetize their 15 minutes of fame through the promotion of cryptocurrency.
Many accused Welch of exploiting his online presence, convincing many people to invest in a coin, only to see it collapse, leaving investors with significant financial losses.
“Influencers” are trying to monetize their 15 minutes of fame through the promotion of cryptocurrencies
The Anatomy of a Carpet Pull
A “rug pull” is a term used to describe the act of creating a cryptocurrency, artificially inflating its value, and then suddenly abandoning it, leaving investors with worthless coins. This tactic has become all too common in the world of meme coins, with new instances appearing almost every week. The speed with which these attacks are occurring has led some to speculate that the same individuals or groups are behind multiple scams, using different aliases and marketing strategies to deceive investors.
The Life Cycle of a Meme Coin Influencer
The life cycle of a meme influencer is quite familiar. It usually starts with the promotion of a cryptocurrency, followed by the release of a branded product. This model has become so familiar it’s almost laughable, with some commenters joking that it’s a “speed run” of an influencer’s life.
The consequences of Meme Coin Mania
The consequences of investing in meme coins can be serious. Financial losses are the most immediate concern, but they also have broader implications for the cryptocurrency market as a whole. The proliferation of meme coins and rug draws has led to a lack of trust in the market, making it more difficult for legitimate cryptocurrencies to gain traction.
Hawk Coin’s value plummeted from $500 million to $60 million within 20 minutes of its launch, leaving investors furious. Crypto commentator Coffeezilla was particularly furious when he joined a Twitter space with the creators of Hawk Coin.
Coffeezilla said: “This is one of the most miserable and horrible launches I have ever seen in my life. I’ve been tracking it on channel for a while. You generated over a million dollars in fees while all of you, your fans, were getting shot at,” before also stating that he thought “they were snipers, but there were also insider trading directly linked to your creator account.
The team behind Welch defended the launch, saying it was not a scam and that “there was no insider trading” and that the fees were being donated to a charity foundation. Cayman Islands. They also defended the company as a whole, asking “do you know how much attorney’s fees cost to set up a foundation in the Cayman Islands to hire trustees?” »
In a post following the debate on Twitter, the team behind Hawk Coin said that “Haliey’s team sold absolutely no tokens.” However, this message now has a community note that indicates that the “team” and insiders have actually been selling their token since launch. A majority never bought anything and only sold the tokens they were given. Hailey is lying and will probably have to “speak tuah” when judging on this.”
A warning to investors
So what can investors learn from the rise and fall of meme coins? The most important point to remember is to approach any investment opportunity with a healthy dose of skepticism. Be wary of endorsements from social media influencers and never invest in any cryptocurrency without conducting thorough research. It is also essential to understand the underlying technology and use case of a cryptocurrency, rather than simply investing based on hype or speculation.
I understand that investing in a new piece is tempting because, simply put, FOMO (fear of missing out). We’ve all heard that story about “guys buying pizza for millions of dollars in crypto” and we don’t want to miss the next boat. But the world of meme coins is a complex, often confusing, and ultimately unpredictable place.
Although they may have started as a joke, the consequences of investing in these digital currencies can be very real. As an investor, it is essential to be aware of the risks and approach any investment opportunity with caution. In doing so, we can avoid falling prey to the next big coin scam and instead focus on supporting legitimate cryptocurrencies that have the potential to drive real innovation and growth.
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