Hailey Welch introduced her meme coin, Hawk Tuah, on the Solana blockchain. It hit a peak market cap of $500 million before plummeting 95% within 24 hours, settling at a value of $25 million.

Critics, including YouTuber Coffeezilla, called the launch chaotic, accusing Welch’s team of insider trading, though Welch denied these claims, stating they tried to curb sniping and had not sold any tokens.

Reports from CoinTelegraph and Bubblemaps indicated that 80-90% of the coin’s supply was controlled by insiders or launch snipers, raising eyebrows over fairness.

  • Meme coin Risks: Memecoins, like Hawk Tuah, capitalize on internet trends and social media buzz but are highly volatile and risky investments. Notable comparisons include Dogecoin and Pepe coin.
  • Potential Legal Ramifications:
    • Legal firm Burwick Law is investigating potential claims from those who lost money in the crash, though no evidence has emerged of fraud or illegal activity.
    • Allegations of a “pump and dump” scheme have surfaced, a practice where asset prices are artificially inflated and quickly sold off, but these remain speculative.
  • Welch’s Rise to Fame:
    • Gained viral attention with her quirky “hawk tuah” comment in a TikTok video.
    • Quickly expanded her brand, including launching a podcast (Talk Tuah), appearing at public events, and releasing a dating app (Pookie Tools).

What Traders and Fans Should Note

  • Volatility Warning: The rapid collapse highlights the dangers of speculative memecoin investments, especially when tied to fleeting internet fame.
  • Ongoing Scrutiny: With legal firms exploring possible claims, the coin’s rollout may face further investigation, potentially impacting Welch’s brand.
  • Broader Implications: The incident serves as a cautionary tale about celebrity-led crypto ventures, emphasizing due diligence for investors.