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HAWK token plummets 91% after launch, erasing most of its initial $490M valuation.
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Insider wallets allegedly control 91% of HAWK’s supply, sparking manipulation concerns
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Influencer Haliey Welch denies free token distribution or market manipulation accusations.
Hawk Tuah, a new memecoin created by viral influencer Haliey Welch, gained attention but quickly fell apart. Just hours after its launch, the token’s value dropped by 91%, leaving investors with huge losses. This sudden drop has raised questions about insider trading and market manipulation, putting Welch under scrutiny.
Quick Rise & Sudden Fall of HAWK Token
When Hawk Tuah (HAWK) made its debut on December 4, it quickly reached a $490 million market cap, thanks to the popularity of influencer Haliey Welch. Known for her viral catchphrase, Welch turned her fame into a merchandise line and a podcast with big names like Mark Cuban.
Welch claimed HAWK was “not just a cash grab” and said she wanted to change how people see crypto. Her team promised not to push anyone to buy the token and planned to give free tokens to fans and customers. Welch also said she would keep 10% of the tokens but wouldn’t sell them for a year.
However, HAWK’s value dropped sharply within hours of its launch, falling 91% to a market cap of $48 million. The token now trades at just $0.004826, leaving many investors disappointed.
Allegations of Insider Trading & Sniping
The rapid decline in HAWK’s value was linked to suspicions of insider trading and sniping, a practice where certain entities buy up large portions of a token’s supply at launch.
According to data from DexScreener and Bubblemaps, insider wallets and snipers controlled up to 91% of the token’s supply at launch. However, many users accused Welch’s team of market manipulation.
In response to these allegations, Welch and her team have denied any wrongdoing. In a recent tweet post, she stated that neither she nor any key opinion leaders (KOLs) were given free tokens.
Copy and pasting:
Hawkanomics:
Team hasn’t sold one token and not 1 KOL was given 1 free token
We tried to stop snipers as best we could through high fee’s in the start of launch on @MeteoraAG
Fee’s have now been dropped pic.twitter.com/E7xN9VmCrx
— Haliey Welch (@HalieyWelchX) December 4, 2024
Welch’s team even claimed they attempted to reduce the risk of sniping by using high fees on the Meteora platform.
Major Loss for Investors
Despite these efforts, SOLScanner data revealed that one wallet bought 17.5% of HAWK’s supply seconds after launch, using 4,195 Wrapped Solana (WSOL) worth nearly $1 million. This wallet then sold the tokens within an hour, making a $1.3 million profit, further fueling the controversy
Many investors who bought the token at a high price have since lost large sums, with some swapping other coins for HAWK, only to see their investments plummet.
Some users have even filed complaints with the SEC, claiming the launch may have broken securities rules. Lawyers are now offering help to those affected, suggesting Welch and her team could face legal issues.
