The viral internet sensation earlier this summer, known as “Hawk Tuah”, rode the wave of his popularity and decided to create a memecoin called $HAWK, but it sparked controversy after a disastrous launch. Haliey Welch, the person behind the TikTok meme, decided to abandon her memecoin entry into the cryptocurrency industry last Wednesday, December 4, and despite its growing availability, it crashed.
Other crypto content creators have accused Welch of insider trading behind this disastrous Hawk Tuah memecoin launch, but the founder and her team have maintained their stance on selling the coin honestly.
‘Hawk Tuah’ Girl’s New $HAWK Memecoin Rose and Crashed
Haliey Welch and her team spear a new memecoin amid the cryptocurrency’s significant popularity in the United States, and coupled with the popularity of the content creator turned crypto founder, it saw a significant rise on its first day. According to DexScreenerThanks to the HAWK memecoin’s following, it quickly reached its massive market cap of $500 million upon launch.
However, the coin’s rise was short-lived, as it quickly crashed, by as much as 95%, to a market cap of just $25 million by the afternoon of December 5, a few hours only after its publication.
The crash of memecoin based on the Solana blockchain led many investors and traders to suffer huge losses after its soaring performance, which later saw a sharp decline, raising allegations of insider trading, according to CoinTelegraph.
According to the report, many users shared their outrage on social media after the controversial launch, with the stock previously trading at its high of $0.04916 on Wednesday, December 4, before its low of $0.002439.
Currently, the Hawk Tuah memecoin is now valued at $0.003361 on DexScreener charts, with a market cap of $34.1 million.
Accusations of “Pump and Dump” on Memecoin “Hawk Tuah”
The Hawk Tuah memecoin was reported to have engaged in a “pump and dump” scheme in which investors would help increase its market valuation at a given time to show its strong performance, and then later sell their assets, that is to say, dumper them. Additionally, it was revealed that Welch and his team engaged in insider trading and sniping, but the HAWK founder quickly dispelled rumors.
As of now, it is unclear whether the disastrous launch of the Hawk Tuah memecoin will have any legal implications, but those who have lost money are encouraged to consider taking legal action against them.
Memecoins and their rise in market power
Over the past few years, memecoins have made their mark in the cryptocurrency industry by introducing a low-cost digital currency that can be owned by anyone, and it primarily focuses on online hype that contributes to its growth. One of the most famous memecoins currently is Dogecoin who is best known for rallying through his ties to Elon Musk, as well as Donald Trump’s acknowledged focus on crypto.
However, memecoins have faced a lot of criticism online, especially when financial experts and prolific individuals have previously campaigned against them, including the real “Wolf of Wall Street.” Jordan Belfort.
For now, the Hawk Tuah memecoin remains available on the market and has since returned to performance after its massive rise and crash, but like all other memecoins on the market, it is off to a slow and controversial start which could have a negative impact on Welch and his team. face the consequences.