Hailey Welch, widely recognized as the face of the viral “Hawk Tuah” meme, is under fire following the troubled launch of her cryptocurrency, HAWK.
The memecoin’s value plummeted shortly after its release, sparking backlash on social media and allegations of unethical practices.
YouTube investigator Stephen Findeisen, known as “Coffeezilla,” has called out the misinformation surrounding the event, urging clarity and accountability.
Allegations of Insider Trading and High Fees
The controversy began with the Dec. 5 launch of HAWK, which quickly attracted attention due to Welch’s online fame. However, the token’s rapid rise and sudden drop in value raised suspicions about insider manipulation.
Coffeezilla, in a Dec. 6 post on X (Twitter), criticized exaggerated headlines that claimed Welch profited $50 million or orchestrated a $500 million scam. “She didn’t rug for 500M, and she didn’t profit $50M,” he stated.
A major point of contention has been the structure of HAWK’s launch. The project implemented a 15% transaction fee, generating significant profits for the team behind it. Coffeezilla alleged that the team presold millions of tokens to strategic advisors, who then sold early before market “snipers” caused a dramatic crash in value.
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Further analysis revealed that 96% of the tokens were controlled by insiders, contradicting public claims that the team did not sell tokens. This concentration of tokens allowed insiders to exit with profits, leaving fans and novice investors bearing the brunt of the losses.
Coffeezilla also questioned the whereabouts of the profits from transaction fees and the presale, stating that the exact amount remains unclear. According to Welch’s lawyer, the influencer has only received $125,000, with her tokens locked for a year.
Despite widespread speculation, Coffeezilla confirmed that no lawsuits have been filed against Welch at this time.
Growing Concerns About Memecoins
The HAWK controversy is not the first one. These cryptocurrencies, often created as jokes, appeal to young investors due to their low cost and playful branding.
However, experts warn that they carry significant risks, akin to high-profile assets like Bitcoin or Ethereum, but with even less protection for investors.
Carol Alexander, a finance professor at Sussex University, noted that the popularity of meme coins has led to financial losses for many young investors. “Many of them are losing money,” she told the BBC, highlighting the speculative nature of these investments.
Welch is not the first celebrity to face backlash in the crypto space. Numerous influencers and public figures have ventured into cryptocurrencies, only to be criticized for failed projects or misleading their audiences.
Coffeezilla emphasized the importance of sticking to verified facts, calling out the spread of misinformation about Welch’s alleged profits and legal troubles. “Lots to criticize here, and I do, but let’s stay to what we know,” he said.
The lack of regulation in the crypto industry exacerbates these issues, leaving investors vulnerable to scams and poorly managed projects. While Welch’s involvement in the controversy remains under scrutiny, the incident underscores the need for greater accountability in the crypto market.
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