By Mark Hunter
13 hours agoFri Dec 06 2024 08:32:34
Reading Time: 2 minutes
- The founders of the HAWK token have denied allegations of a rug pull
- The token, launched by “Hawk Tuah Girl” Hailey Welch, experienced a dramatic rise and fall in value shortly after its launch
- Allegations of insider trading and a potential “rug pull” have emerged against its creators
The creators of the HAWK token, named after Haliey Welch, known as the “Hawk Tuah Girl,” have been accused of a rug pull after the memecoin collapsed within hours. The coin was launched on December 4, quickly surging to a market cap of $490 million before plummeting by 95% within hours. This rapid decline has led to accusations of insider trading and a “rug pull,” though Welch and her team assert they have not sold any tokens and aimed for a long-term project.
Launch and Immediate Surge
The HAWK token, introduced on the Solana blockchain , capitalized on Welch’s viral fame from earlier this year. Upon its release, the token’s value skyrocketed, reaching a peak market capitalization of $490 million, with some buyers pumping tens of thousands of dollars into it. However, the token’s value nosedived by 95% within hours, dropping to $26.4 million:
Blockchain analysis revealed that a small number of wallets controlled a large portion of the HAWK supply at launch, suggesting potential insider involvement. Critics, including crypto investigator Coffeezilla, have labeled the project a scam, accusing Welch and her team of profiting at investors’ expense:
Welch Defends Project
Welch has denied any wrongdoing, stating on social media that her team had not sold any tokens and had implemented high fees at launch to deter speculative trading:
Welch emphasized that the project was intended for long-term success and not as a cash grab, words that only ever come out of the mouths of founders whose projects are DOA, and there has already been a development that should concern Welch: law firm Burwick Law has invited affected investors to seek legal advice, indicating potential legal repercussions.
If the evidence of insider trading, as Coffeezilla and many others allege, then Welch and the creators of HAWK could be in serious trouble, as many rug pullers have found in the past.
