Hailey Welch's memecoin $HAWK plummeted after an explosive debut, sparking debates and suspicions around the new crypto project.
The Meteoric Rise
At 10:00 pm UTC on December 4, the $HAWK token launched on the Solana blockchain, instantly capturing the interest of investors and crypto enthusiasts. Within minutes, the memecoin achieved a market cap of $490 million. However, the surge was short-lived as it plunged 91% in less than three hours, trading at $0.004906 with a market cap of $49 million by the time of publication.
The Controversy Behind the Crash
The rapid volatility of $HAWK stirred controversies and allegations of insider trading. Data from Bubblemaps revealed that insiders and specific investors controlled 80%-90% of the token's supply at the onset, raising concerns about fair distribution. Welch denied involvement in such practices, stating neither she nor her team sold tokens or distributed them for free to key opinion leaders. Despite these assurances, Solscanner data showed a single wallet acquiring 17.5% of the $HAWK supply, later sold at a profit.
Legal and Ethical Questions Arise
The rise and fall of $HAWK have triggered legal concerns. Users and investors have voiced frustrations over transparency and fairness, with some filing complaints with the SEC. Legal firms began offering services to those who suffered financial losses. This is reminiscent of past instances where celebrities faced legal scrutiny for promoting tokens.
The $HAWK crash highlights the complexity of starting new ventures in cryptocurrency and emphasizes the need to address legal and ethical issues to maintain industry trust.
