Haliey Welch, widely recognised as the face of the viral “Hawk Tuah” meme, is under fire following a significant drop in the value of her recently launched cryptocurrency.
Shortly after its launch on Wednesday, her “Hawk” digital coin achieved a market cap of $490 million, only to plummet by over 95% in value within hours.
The situation has prompted accusations from various quarters, notably YouTube cryptocurrency investigator Coffeezilla, who alleges that Ms Welch engaged in a “pump and dump” scheme. This practice involves the creators of a cryptocurrency inflating its price through hype before its launch, only to sell off their holdings for profit subsequently.
She has refuted claims that her team has sold any of the tokens in their possession.
The BBC has contacted Ms Welch’s representatives for a statement.
In a post on X (formerly Twitter) on Wednesday, she stated, “The team has not sold a single token. “
She stated that no key opinion leaders received a complimentary token.
Ms Welch had provided complimentary Hawk tokens to select fans in anticipation of the launch on various social media platforms.
Hawk made its debut on the Solana blockchain at approximately 22:00 GMT on Wednesday, quickly achieving a market capitalisation peak of $490 million.
Nevertheless, it experienced a significant decline from this peak, dropping to approximately $60 million within just 20 minutes.
Ms Welch and her team face allegations from fans and investors who claim they were “misled” and “betrayed.” Critics have suggested that the launch may have been a “rug pull,” a tactic in which cryptocurrency promoters attract buyers, halt trading, and abscond with the funds generated from sales.
A community note regarding Ms. Welch’s post on X challenges her explanation, asserting that her team has sold their Hawk coins since the launch.
Allegations of fraudulent activity
Stephen Findeisen, known as Coffeezilla, asserted that Hawk provided “insiders” with a competitive edge.
“In situations such as this, the focus is not on seasoned cryptocurrency enthusiasts, but rather on genuine fans who have little to no prior experience in the crypto realm,” he stated in a video that has garnered over 1.4 million views.
He alleged that Ms. Welch’s team was “profiting from a rug pull.”
Following the release of a video in which he engaged with several individuals associated with the cryptocurrency, he asserted that those involved in the “Hawk Tuah scam” were “unwilling to take any accountability. “
In a recent post on X, Ms Welch asserted that her team sought to deter what she termed “snipers”—traders who rapidly buy and sell cryptocurrencies to capitalise on price discrepancies—by implementing increased fees on a particular exchange.
In a recent post on X, the team responsible for the cryptocurrency OverHere has refuted various claims regarding its launch.
The statement emphasised that “Halie’s Team has sold absolutely no tokens whatsoever.”
The rise in popularity of meme coins can be attributed to their humorous and affordable nature, attracting many investors.
These assets are frequently perceived as having a lower risk than more prominent cryptocurrencies such as Bitcoin or Ethereum. However, they carry similar dangers, often leaving investors without any safeguards in the event of financial loss.
On Thursday, Carol Alexander, a finance professor at Sussex University, spoke to the BBC about the growing trend of young investors in meme coins, highlighting that a significant number are experiencing financial losses.
A number of celebrities and influencers who have entered the cryptocurrency market have encountered comparable criticisms.
In 2021, US regulators fined Kim Kardashian $1.26 million for not revealing that she had received compensation to promote a cryptocurrency scheme known as EthereumMax.
Recently, YouTuber Logan Paul accused him of misleading his audience by endorsing cryptocurrency coins or investments while failing to disclose his financial stakes.
Haliey Welch, known as ‘Hawk Tuah Girl,’ has garnered attention for her unique persona and contributions. Her identity and background interest many, prompting questions about her journey and significance in her field.
Ms Welch, recognised online as the “Hawk Tuah girl,” gained widespread attention after her viral moment in June, when she mimicked the spitting sound by using the onomatopoeia “hawk that” during an interview.
The 22-year-old from Belfast, Tennessee, quickly rose to fame as an internet sensation.
She has garnered a substantial following, reaching hundreds of thousands across multiple social media platforms. She has also successfully launched her own merchandise line and a podcast titled “Talk Tuah”.”
In a July statement to the Hollywood Reporter, her manager highlighted her distinct approach to fame, noting that she had yet to pursue internet recognition actively. Before her appearance in the now-viral “Hawk Tuah” video, she had taken a break from social media for several months, prioritising her mental health.
Rolling Stone has compared her humorous, small-town charm to a “Gen Z Dolly Parton”.
Ms. Welch informed TMZ before Wednesday’s launch of Hawk that her initiative aims to confront “a bunch of imposters” who are impersonating her and marketing their own coins.
“This approach effectively fosters interaction and unity among my fans and community,” she stated.