Originally published on: December 05, 2024
The launch of social media influencer Haliey Welch’s Hawk Tuah memecoin has caused quite a stir in the crypto world. After reaching a peak market cap of $490 million, the memecoin quickly took a nosedive, now valued at $41.7 million, marking a significant 91% drop in just a few hours.
Contrary to allegations of insider trading and sniper activity, Welch has denied any involvement by her team or affiliates in selling tokens. Despite these claims, data from DexScreener and Bubblemaps indicate that a large portion of HAWK’s supply was controlled by insiders and snipers at launch.
To address the issue of snipers, Welch’s team launched the token on the decentralized liquidity protocol Meteora. However, a wallet managed to snatch up 17.5% of the supply at launch, selling it off for a profit of over $1.3 million shortly after.
The controversial launch of Hawk Tuah memecoin has not only caused financial losses for investors but has also raised concerns about potential regulatory repercussions for Welch and her team. Users have reportedly filed complaints with the SEC, and law firms are offering their services to those affected by the token’s drastic value drop.
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