As a seasoned analyst with over two decades of experience in financial markets, I have seen my fair share of questionable practices and downright scams. The case of Hailey Welch and the Hawk Tuah memecoin is one that raises serious red flags.
For the past fortnight, there’s been no sighting of social media sensation Hailey Welch, often referred to as “Hawk Tuah Girl.” This absence has sparked speculation and debate about her digital currency initiative, the Hawk Tuah (HAWK) memecoin.
In simpler terms, “Welch,” who became well-known due to her podcast titled “Talk Tuah,” last spoke to her listeners saying she was “getting ready for bed.” It’s important to note that shortly after this, the value of her memecoin dropped a significant 95%.
Investors Sue Hailey Welch Over Alleged Memecoin Fraud
swift consequences followed the sudden drop in value of the Hawk Tuah token, as disillusioned investors filed lawsuits against Welch and multiple related businesses.
The lawsuit, filed on behalf of affected investors, accuses Welch, the Tuah The Moon Foundation, OverHere Ltd., its executive Clinton So, and coin promoter Alex Larson Schultz of orchestrating a fraudulent “rug pull.”
As per court papers acquired by Newsweek, the lawsuit claims that the “illegal marketing and trading” of the Hawk Tuah memecoin led to substantial monetary damages, predominantly affecting individuals who were novice investors in the realm of cryptocurrency.
The lawsuit points out that numerous investors were drawn towards the Hawk Tuah project because of Welch’s public support and significant role in its development plan. It is claimed that “The dramatic drop in the token’s worth resulted in substantial losses for investors who trusted in Welch’s involvement and the project’s declared timeline.
To begin with, my focus was drawn towards the Hawk Tuah token, which garnered significant interest within the crypto community. This surge in attention could be attributed to the relentless marketing efforts of Welch, who tirelessly promoted it on various social media channels and her podcast.
After the token’s value plummeted rapidly, wiping out millions of dollars from investors’ funds, accusations of poor management and questionable business tactics arose.
Insider Trading Allegations
Approximately two weeks back, Bitcoinist shared news about on-chain researcher Coffeezilla accusing Hailey Welch and her team at Hawk Tuah of defrauding investors following the token’s debut.
On November 26th, Welch revealed her collaboration with the Web3 platform OverHere for the debut of the Hawk Tuah memecoin, asserting that it was poised to revolutionize the cryptocurrency sector.
On December 4, when it was first released, the token’s market value soared to a staggering $500 million. However, in just a matter of minutes, it nosedived by an astounding 88% as significant investors quickly unloaded their holdings.
When the value of the token plummeted, concerns arose among investors and financial experts about possible insider trading and a carefully planned exit scam (rug pull) allegedly masterminded by the project’s developers. A significant number of affected investors were fans of Welch, many of whom were new to the world of cryptocurrencies.
After facing criticism, Welch disclosed the economic model of the token, known as “Hawkanomics.” This model showed that merely 2% of the total token supply was intended for public distribution, while a significant 17% was earmarked for a “strategic allocation” that was already unlocked at launch. Critics claim that this portion was channeled to the wallets of insiders.
In a conversation at X Space, Coffeezilla accused the Hawk Tuah team of generating over $1 million in fees from the token and raised doubts about how they managed the situation. He proposed that the sell-off was not just due to market snipers but possibly connected to insider trading involving the creators’ accounts.
As an analyst, I must express my disappointment in the recent launch of this project, having labeled its tokenomics as “horrible.” Known as Coffeezilla, a well-respected figure within the crypto community, has publicly criticized it as one of the worst launches he’s encountered. He raised concerns about the management of presale funds, which totaled approximately $16.69 million, demanding greater accountability from the team behind this project.
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2024-12-20 11:46