Money Influencer Vivian Tu: 3 Things To Learn After Hawk Tuah Meme Coin Fallout

The Hawk Tuah coin's rapid rise and fall demonstrates why people viewing meme coins as a solid investment should be cautious.

Social media star Hailey Welch, also known as the “Hawk Tuah girl,” recently announced her own cryptocurrency meme coin, $HAWK.

It seemed like an easy way for Welch’s celebrity-influenced crypto fans to quickly earn some extra money — but it soon turned into a disaster when the coin crashed just hours after its launch.

In a recent TikTok video, financial influencer Vivian Tu discussed the fallout from the controversy, and some lessons everyone can take from it.

Hawk Tuah Coin: 3 Things To Learn From the Meme Coin Debacle, According to a Financial Influencer

exercise caution with ‘celebrity’ frenzy

The Hawk Tuah coin’s rapid rise and fall serves as a reminder for those who view meme coins as a sound investment to exercise caution.

With no inherent value to back it, the coin was largely driven by hype — and when that hype fizzled out, so did its worth.

Tu explained that people were essentially betting on Welch’s celebrity status more than a concrete investment.

“This was never an investment. This was always gambling,” she said.

Lucas Barcelo, entrepreneur and founder of Thrivin’ Life, also noted that investors hoping for a real return were really just betting on a trend.

“How are people calling this an investment, when it has statistically worse odds than even gambling?” he asked.

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always understand the legalities

While Welch and her team maintained that the launch was not a scam, the controversy begs a serious question: Was it even legal?

According to Kaspersky, while crypto rug pulls are always unethical, unless they’re hard rug pulls (with malicious backdoors), they’re not necessarily illegal.

Tu pointed out that while it might not have been inherently illegal, the ethical concerns are clear.

Don’t Let FOMO Dictate Financial Decisions

FOMO (fear of missing out) has been a driving force behind many meme coin investments, with people joining the bandwagon after seeing others quickly profit.

However, blindly following the crowd has led to losses for many in the meme coin game, and both Tu’s and Barcelo’s advice is clear: Don’t invest in hype, invest in knowledge.

“If you’re going to use meme coins and NFTs as part of your portfolio, you should approach these investments with the adequate amount of risk versus reward, and decide if you can stomach the downside,” said Barcelo.

The collapse of the Hawk Tuah meme coin serves as a sharp reminder: Without understanding the fundamentals and risks, entering the crypto space can be akin to gambling.

Whether it’s meme coins or any speculative investment, the takeaway is the same: Research, caution and professional guidance are key to navigating a volatile market.

This article originally appeared on GOBankingRates.com: Money Influencer Vivian Tu: 3 Things To Learn After Hawk Tuah Meme Coin Fallout