A meme coin launched by viral influencer Haliey Welch of the "Hawk Tuah" fame became a subject of controversy on Wednesday after it pumped and dumped, eroding millions of dollars in market value in quick time.
What happened: HAWK, launched on Solana (CRYPTO: SOL)-based Meteora on Wednesday, swiftly gained a market valuation of almost $425 million before plummeting to $30 million within five hours, according to Dexscreener data.
As of this writing, the meme coin was valued slightly higher at $48 million, but still 90% down from the initial frenzy.
The sudden downfall sparked outrage in the cryptocurrency community.
An X user with the pseudonym JIGGA.5mbK revealed that their $35,000 investment in the coin was reduced to $2,000 after 10 minutes of buying.
"I am a huge fan of Hawk Tuah but you took my life savings," the user said.
The trader also alleged insider trading. "You didn't mention that you were going to buy 97% of the supply and sell it almost immediately to make a large profit."
Influential cryptocurrency investor Beanie also accused token insiders of hoarding 97% of the supply and selling them at the top.
On-chain detective Stephen Findeisen, better known as Coffeezilla, called the launch one of the most "miserable and horrible" ever.
"There were snipers but also insider trading directly linked to trader accounts. What are you guys doing?" he questioned Welch and her team.
Welch, through her X account, denied the accusations, saying that no free token was given to anyone from the team or key opinion leaders—a jargon used in the cryptocurrency space for influential figures promoting nascent projects.
However, users quickly added a community note, saying that her team has been actively selling the tokens handed to them.
Many victims demanded answers and were contemplating legal action. In fact, the community note sarcastically mentioned, "Hailey is lying and will likely have to “talk tuah” judge about this."
Why It Matters: Welch went viral earlier this year for her quirky catchphrase “Hawk Tuah” during a street interview.
The video was posted online and made waves on social media, giving Welch the nickname “Hawk Tuah Girl.” The video received millions of views on TikTok and Instagram, inspiring several memes and parodies.
Riding high on her celebrity status and the buzz around the phrase, Welch entered the meme coin space. In an interview with Fortune, she said that the token was "not just a cash grab" but could be used for things other than speculation.
However, as it turns out, things haven't exactly started on a smooth note for the internet star.
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