Haliey Welch’s HAWK token experienced a rapid rise and fall in value, going from a $490 million market cap to just $48 million within hours of its launch. This drastic drop has led to suspicions of insider trading and market manipulation, as data showed that up to 91% of the token’s supply was controlled by insider wallets and snipers at launch. These allegations have put Welch and her team under scrutiny, with many investors facing significant losses due to the plummeting value of the token.
Welch, known for her catchphrase and viral merchandise line, had promised not to pressure anyone into buying HAWK and had plans to distribute free tokens to fans and customers. However, the token’s value dropped sharply, leading to accusations of market manipulation. Despite this, Welch denied any wrongdoing and claimed that neither she nor any key opinion leaders were given free tokens. Her team also stated that they tried to prevent sniping by implementing high fees on the Meteora platform.
One wallet was discovered to have purchased 17.5% of HAWK’s supply seconds after launch, using nearly $1 million worth of WSOL and selling the tokens for a $1.3 million profit. This further fueled the controversy surrounding the token, with many investors facing substantial losses after buying in at high prices. Some investors have filed complaints with the SEC, suggesting that the launch of HAWK may have violated securities rules. Legal experts are now offering assistance to those affected, indicating potential legal issues for Welch and her team.
The sudden rise and fall of HAWK token have raised questions about the risks associated with meme coins and the cryptocurrency market in general. Investors are reminded to exercise caution and do thorough research before investing in any token, especially those promoted by influencers. The HAWK incident serves as a cautionary tale for those looking to invest in the volatile and often unpredictable world of cryptocurrencies, emphasizing the importance of due diligence and prudent decision-making in the digital asset space.
