Hawk Tuah Girl Haliey Welch Faces Criticism After Cryptocurrency Launch Fails
Haliey Welch, the viral internet star known for her "Hawk Tuah" meme, has come under intense scrutiny following the launch of her new cryptocurrency, "Hawk." The coin, which initially reached a market capitalization of $490 million after its debut on Wednesday, quickly plummeted by more than 95%, sparking accusations of a scam and unfair manipulation.
Hawk Cryptocurrency's Rapid Rise and Fall
The "Hawk" digital coin launched on the Solana blockchain at approximately 22:00 GMT, and its market cap skyrocketed to an impressive $490 million within hours. However, the excitement was short-lived as the coin's value dropped dramatically, reaching just $60 million within 20 minutes. The sudden collapse led many fans and investors to voice their frustrations, accusing Welch and her team of orchestrating a "pump and dump" scheme, in which the value of a cryptocurrency is artificially inflated before insiders profit by selling their holdings.
Coffeezilla, a well-known cryptocurrency investigator and YouTube personality, has been vocal about the situation, claiming that Welch's team profited from the crash by exploiting insider advantages. In a viral video watched by over 1.4 million people, Coffeezilla criticized the coin's launch as a classic "rug pull," where promoters draw in investors only to abandon the project after profiting.
Denial of Fraudulent Actions
Despite the accusations, Haliey Welch has denied any wrongdoing. She took to social media platform X (formerly Twitter) to refute claims that her team had sold any tokens after the launch. In her statement, Welch asserted, "Team hasn't sold one token," emphasizing that no "key opinion leaders" (KOLs) were given free tokens. She also explained that higher fees were imposed on one exchange to prevent "snipers," or traders who use automated tools to exploit price gaps for quick profit.
Welch's team, known as OverHere, also publicly denied the allegations, maintaining that no tokens were sold by the team. However, some members of the community have contested her claims, with a community note on her post stating that the team had been selling Hawk coins since launch, further fueling skepticism about the legitimacy of the project.
The Meme Coin Phenomenon and Risks
The "Hawk" cryptocurrency falls under the category of meme coins, which have gained popularity in recent years due to their lighthearted, low-cost appeal. Meme coins like "Hawk" are often seen as a way for investors to engage with the crypto market without significant financial risk. However, these types of cryptocurrencies also carry the same risks as more established assets, such as Bitcoin or Ethereum.
Carol Alexander, a finance professor at Sussex University, has highlighted that while meme coins may seem less risky, many young investors are still suffering significant financial losses. Welch's coin's dramatic fall in value serves as a reminder of the volatile nature of cryptocurrency investments, especially in meme-based projects that may lack strong foundational backing.
Previous Celebrity Backlashes in the Crypto Space
Welch’s experience is not the first instance of a celebrity or influencer facing backlash in the cryptocurrency space. In 2021, reality TV star Kim Kardashian was fined $1.26 million by US regulators for promoting a cryptocurrency, EthereumMax, without disclosing that she had been paid for the endorsement. More recently, YouTuber Logan Paul has faced similar accusations for promoting crypto projects without fully revealing his financial interests.
Who is Haliey Welch?
Haliey Welch, 22, from Belfast, Tennessee, became an internet sensation after her viral "Hawk Tuah" video, where she imitated the sound of someone spitting in an interview. This quirky moment earned her widespread attention, and she quickly gained hundreds of thousands of followers on social media platforms. Welch leveraged her newfound fame to launch merchandise and a podcast titled "Talk Tuah."
While Welch's rise to stardom was largely unintentional, as she had taken a break from social media for mental health reasons before the video went viral, she has since embraced her online persona. The press has even likened her down-to-earth, humorous personality to a "Gen Z Dolly Parton." Her "Hawk" cryptocurrency was launched in part to protect her brand from what she described as "imposters" selling their own coins under her name.