Fraud or simply one other influencer-led meme coin gone unhealthy? That’s the painful query buyers are dealing with within the aftermath of the HAWK meme coin two days in the past.
However did Haliey Welch and her workforce pull a basic rug pull, or was this merely the affect of FUD hitting a unstable meme coin?
Both approach, the HAWK story is one other lesson in keep away from crypto scams, whereas Flockerz (FLOCK) reveals the best way ahead for well-researched meme coin tasks.
A Meme Coin Match for a Queen
Haliey Welch, widely known because the ‘Hawk Tuah Lady,’ grew to become an web movie star in 2024. She’s change into a big crypto supporter, shopping for DOGE and usually turning into a meme coin fan.
So it wasn’t a shock when the self-proclaimed ‘Queen of Memes’ made plans to launch her personal meme coin.
Dubbed HAWK, the token launched on December 4, 2024, through the Solana blockchain by means of OverHere.
HAWK Collapses Spectacularly
The cryptocurrency skilled an preliminary surge, reaching a market capitalization of $500M, however swiftly plummeted by over 95% underneath regular promoting stress.
Finally, the market cap stabilized and at the moment sits at $31M, in response to CoinMarketCap.
What occurred?
This speedy decline led to allegations of a ‘pump-and-dump’ scheme, the place insiders inflate an asset’s worth by means of promotion after which unload holdings for revenue, leaving different buyers with losses.
Welch denied these claims, stating on social media that her workforce hadn’t bought any tokens and had applied excessive preliminary charges to discourage early merchants from manipulating the launch.
Most buyers discovered these claims questionable, at greatest. Blockchain explorers demonstrated big concentrations of tokens being held in after which bought from a small variety of wallets. Data from Bubblemaps.io reveals simply how vital the concentrations have been, with one pockets controlling over 15% of the provision.
As soon as the promoting started, token costs crashed, and the underside fell out of the spectacular market cap.
And it didn’t take lengthy for buyers to report vital monetary losses, with some claiming to have invested life financial savings or kids’s school funds.
The incident raised questions on Welch’s credibility.
HAWK Buyers Possible New to Crypto
Analysts corresponding to Coffeezilla on YouTube identified that a lot of Welch’s followers and doable HAWK buyers have been seemingly new to crypto. They could not have realized the significance of doing analysis as a substitute of simply following the recommendation of a younger, newly-famous influencer.
Among the many pink flags for the HAWK token:
The tip outcome was {that a} fifth of the full tokens have been obtainable to be bought instantly, and solely 3% of tokens have been allotted to the general public. The entire course of lacked the mandatory transparency.
Speak on-line rapidly turned to fraud and authorized prosecution.
Meme Coin Buyers: Search for Nicely-Vetted Tasks
The launch of Haliey Welch’s HAWK meme coin resulted in a quick valuation peak adopted by a pointy decline, resulting in investor losses and accusations of fraudulent exercise, which Welch disputes.
It additionally highlights how vital it’s for buyers to decide on tasks with as a lot data as doable. For tasks like Flockerz, which means roadmaps, neighborhood governance, data on tokenomics, and particulars on staking, vesting intervals, and extra.
In crypto, information is energy. Haliey Welch could not have finished her personal analysis – or perhaps she did. Both approach, the HAWK launch rapidly fell right into a rug pull.
Don’t fall for the subsequent HAWK. When investing in meme cash, do your personal analysis to discover the perfect upcoming tasks.
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