The launch of viral influencer Haliey Welch’s Hawk Tuah memecoin has quickly become a hot topic in the crypto community. Initially celebrated for its potential, the token saw a dramatic fall, plunging 90% shortly after its debut. This decline has raised eyebrows and sparked conversations around allegations of insider sales and the influence of snipers during the launch.
On December 4, at precisely 10:00 pm UTC, Hawk Tuah was introduced to the market, creating a whirlwind of excitement. Within hours, its market cap skyrocketed to $490 million before an abrupt fall to just $41.7 million. This 91% nosedive within a mere three hours paints a bleak picture of the token's early performance and leaves investors questioning the events surrounding its launch.
Amid the chaos, allegations surfaced about insider wallets and snipers controlling a significant chunk of the Hawk Tuah memecoin supply. Data from DexScreener and Bubblemaps pointed to these entities potentially holding 80%-90% of the tokens initially. Welch, however, has publicly denied claims of her team engaging in insider sales, asserting that no key opinion leaders were granted free tokens and that efforts were made to curb sniping at launch through Meteora.
Despite these assurances, evidence from Solana block explorer Solscanner indicated that a particular wallet executed sniper activities moments after Hawk Tuah’s launch. Acquiring 17.5% of the token's supply for 4,195 Wrapped Solana (WSOL), this entity reportedly turned a handsome profit of $1.3 million by trading 135.8 million HAWK tokens. Investors on social media have expressed distress over significant losses, with notable mentions of conversions from other memecoins like MOODENG resulting in huge financial setbacks.
The troubled launch of Hawk Tuah has prompted discussions about potential legal repercussions for Welch and her team. Some users on social media platforms have indicated they have reached out to the Securities and Exchange Commission (SEC) with grievances. Simultaneously, law firms are reaching out to affected investors, suggesting possible legal actions to recoup their losses. Burwick Law’s call for those impacted to explore their legal rights reflects the mounting concern over the HAWK fiasco.
The Hawk Tuah memecoin's rapid descent post-launch has not only shocked investors but has also illuminated some of the darker aspects of cryptocurrency launches, such as the impact of insider sales and sniper tactics. As the dust settles, the overarching sentiment focuses on the need for more transparency and regulation in the memecoin sector to protect investors and maintain trust within the community. As Welch and her team navigate these challenging times, the spotlight remains on how they address these allegations and the potential legal challenges ahead.
