Why Haliey Welch’s HAWK crypto is controversial – ‘Talk tuah judge about this’

• Haliey Welch’s HAWK memecoin surged 900% before crashing 91% within hours.
• Blockchain data contradicts Welch’s claim that her team didn’t sell HAWK tokens.

The rise of memecoins in 2024 has taken an unexpected turn with the launch of HAWK, a new token on the Solana [SOL] blockchain inspired by viral internet sensation Haliey Welch.

Known for her quirky catchphrase and viral fame earlier this year, Welch has since built a brand empire, including a merchandise line and podcast featuring high-profile guests like Mark Cuban.

Hence, now venturing into crypto, Welch believes that HAWK aims to change how people view cryptocurrency and not just fuel speculation.

However, questions surrounding the token’s purpose and valuation remain, as her manager, Jonnie Forster, sidesteps inquiries into its legal framework.

Remarking on the same, Forster told Fortune, 

“We don’t want to break securities laws. We would say that we’re almost, like, tokenizing, in a sense, Haliey’s fan base.”

Hawk crypto mishap

Haliey Welch, famously dubbed the “Hawk Tuah” girl after her viral June interview with street YouTubers, has faced swift backlash following the launch of her memecoin, $HAWK.

Though Welch gained fame for her humorous response, her entry into crypto hasn’t pleased investors.

This was confirmed as the token’s value plummeted by over 90% within hours of its debut, leaving the crypto community unimpressed and sparking skepticism about the project’s viability.

For those unaware, initially priced at $0.005492, $HAWK surged by over 900% in value on 4th December, as per DEXScreener.

However, the excitement was short-lived, as HAWK’s value plunged by 91% within hours.

Community reactions

Strangely, the rapid volatility created opportunities for some traders, with data showing that one individual sold over 135 million HAWK tokens, reportedly earning $1.3 million in a single trade. 

Providing further insights on the matter, a community note on one of Welch’s X posts claimed,

“96 percent of the $HAWK supply is in 10 connected addresses before the launch.”

As expected, Welch asserted that her team had not sold any HAWK tokens, but blockchain data suggests otherwise.

However, the community note mocked the post and stated,

“Hailey is lying and will likely have to ‘talk tuah’ judge about this.”

That being said, Welch and her manager put it best, insisting that HAWK memecoin’s focus lies beyond valuation, despite potential SEC scrutiny. 

And, as obvious as it sounds, Welch summed it apt when she said,

“I don’t really see it as, like, a gambling thing. I think it’s, like, a fun way to get my fans to interact.”