Viral memes are a never-ending source of inspiration for creating new meme coins, but not all are legit. One of the latest meme coins to experience significantly positive market sentiment is Hawk Tuah ($HAWK), which turned out to be just another scam. It is based on a meme-worthy moment that brought Hailey Welch overnight success across the internet and social media.
Welch continued to create several business opportunities based on this Hawk Tuah moment, including the Talk Tuah podcast with more than 200K subscribers on YouTube and an AI-powered dating advice app called Pookie Tools. Her latest venture was the crypto world, and Hailey Welch launched the $HAWK coin on Wednesday night, aiming to capitalize on her viral live interview moment.
$HAWK Meme Coin Crashed Only Hours After Launch, Facing Legal Consequences
Despite the positive market sentiment surrounding the $HAWK coin, many crypto enthusiasts swiftly raised concerns, questioning whether it might be another rug pull. However, despite that, the coin quickly reached a significant market cap of $500 million before crashing and dropping down to $25.3 million, according to Coinmarketcap. Now, Welch and the team are facing serious backlash for insider trading and sniper allegations.
The $HAWK crash and the massive losses can paint meme coins in a bad light. The skepticism may deter potential investors, despite the fact that many are legitimate and offer valuable utilities and use cases within the crypto ecosystem.
Before the launch, Welch’s team released a statement saying that their aim was not to break any securities laws but to “tokenize” the influencer’s fanbase. Hailey Welch even talked about the situation posted on X, emphasizing the project’s tokenomics and alleging that the team had not sold a single token or been given any free tokens. According to them, they wanted to prevent snipers by imposing high fees at the beginning of the launch.
However, an X user quickly exposed this by showcasing all recorded transactions regarding the $HAWK tokens. The sale of millions of tokens clearly reveals a case of snipers and insider trading. CoinTelegraph reports that data from Bubblemaps and Dexscreener transparently reveal that a cluster of related wallets controlled up to 90% of the $HAWK tokens at the time of the coin’s launch. The fact that Welch stole $50 million naturally enraged people who had lost a lot of money by investing in the $HAWK token. X users continuously post about losing their money, while others ridicule those who decided to purchase tokens and invest in the Hawk Tuah cryptocurrency.
The team hasn’t sold one token: pic.twitter.com/fg2bCNnxsa
— Zeus (@ZeusLFG) December 4, 2024
Many investors are planning to pursue legal actions against Hailey Welch, and law firms are encouraging them to reach out and discuss possible steps. However, one X user claims that because of the nature of the project, legal repercussions are not a plausible outcome.
I’ve been a lawyer for the last 10 years, speciality is in crypto.
— DR.Crypto Esq (@Drcryptolaw) December 5, 2024
YOU CAN NOT GO TO JAIL OR GET SUED FOR RUGGING A COIN. IT IS YOUR DUMBASSES FAULT FOR BUYING A COIN CALLED $Hawk Tuah IN THE FIRST PLACE
A Meme Coin with the Potential to Explode Upon Launch
Despite the potential setback the Hawk Tuah scandal will create, meme coins are still worthy investments in the crypto world that can lead to massive returns. One of the top meme crypto coins right now is Crypto All-Stars ($STARS), which shows massive potential for growth. The project is now in its final presale stage before going live, offering the last chance to obtain $STARS tokens at a discounted price.
Crypto All-Stars has had massive success during its presale phase, raising more than $9.2 million, and it continues to grow during this last presale lap. Unlike the Hawk Tuah coin, Crypto All-Stars offers security, transparency, and excellent utilities. It introduces the first-ever MemeVault, which offers unified staking for major crypto coins, including Doge, Shiba Inu, and more. It will become the go-to platform for meme coin staking, offering an optimal APY of 246%. Notable crypto analysts on X also recognize Crypto All-Stars’ potential and that the best time to invest in this coin is before the presale ends.
