From Viral Fame to Crypto Infamy: Haliey Welch's HAWK Meme Coin Devolves into Controversy

The launch of the HAWK meme coin, spearheaded by social media influencer Haliey Welch, has devolved into controversy as reports reveal that her crypto team profited £2.59 million ($3.3 million) during a chaotic rollout.

Social media influencer Haliey Welch, known for her viral relationship advice on TikTok, has become embroiled in controversy over the launch of the HAWK meme coin.

According to reports, Welch's crypto team profited £2.59 million ($3.3 million) during the chaotic rollout, which saw the token's value crash by 95% shortly after launch.

The incident has sparked outrage among investors, leading to complaints filed with the US Securities and Exchange Commission (SEC).

Welch, 22, now faces the possibility of lawsuits for her involvement in what some have labelled a "rug pull" scheme.

After her TikTok video on relationship advice went viral earlier this year, Welch quickly amassed over 2.5 million followers.

Leveraging her newfound popularity, she ventured into the world of cryptocurrency, pitching the HAWK token as a community reward for her fan base.

The token, launched on the Solana blockchain, was touted as an opportunity for fans to participate in giveaways tied to Welch's podcasts and merchandise.

However, the coin's value plummeted shortly after peaking at a £392 million ($500 million) market cap, leaving many fans and investors with substantial losses.

Blockchain data from Bubblemaps reveals that nearly 90% of the token supply was manipulated by insiders or snipers who purchased large amounts during the launch.

In a post on X (formerly Twitter), Welch claimed that her team had attempted to prevent snipers, but the damage was already done.

"We tried our best to stop snipers. They fucked us over. I'm sorry. I tried," she wrote.

However, Bubblemaps CEO Nicolas Vaiman alleges that the HAWK team orchestrated a "one-day pump and dump," ultimately pocketing $3.3 million in profits.

The data shows that 17% of the token supply was allocated to 285 early investors, many of whom sold their holdings immediately, destabilising the coin's price.

Furthermore, only 3% of the tokens were made available to the public through the Meteora exchange, despite Welch's claims that 20% would be distributed to fans as giveaways.

Additionally, the team is said to have collected an estimated £1.57 million ($2 million) in fees from the exchange.

During a heated audio event on X Spaces, journalist Stephen Findeisen, known as "Coffeezilla," confronted Welch's team over the launch.

"This is one of the most miserable, horrible launches I've ever seen," Findeisen said. "You guys are making so much money off of this. It's insider trading."

These allegations were denied by Alexander Larson Shultz, a team member nicknamed "Doc Hollywood" who has ties to Canadian entertainer Howie Mandel.

"We had no control over the price of the token," Shultz said. "We did not manipulate the token. We did not backdoor ourselves any tokens."

As the controversy deepens, Welch may face legal repercussions for her actions. According to Scott Armstrong, a former US Department of Justice prosecutor, Welch could be subject to civil or criminal investigations for misleading her followers.

"The optics are obviously terrible and have the hallmarks of a rug pull," Armstrong said.

Welch's lawyer, Christian Barker, has stated that she was paid £98,135 ($125,000) to promote the coin, alongside a 50% share of the net proceeds after expenses.

While Welch has claimed ignorance of crypto regulations, such as those that led to legal action against Kim Kardashian for promoting unregistered tokens, many believe she was used as a marketing tool by experienced crypto insiders.

Disgruntled fans have filed complaints with the SEC, accusing Welch and her team of fraudulent practices.

Meanwhile, blockchain analysis suggests that the token launch involved coordinated efforts to maximise insider profits at the expense of public investors.

The HAWK debacle highlights the risks associated with speculative meme coins. With cryptocurrencies gaining mainstream attention from figures like Donald Trump and Elon Musk, experts warn that scams involving unregulated tokens are likely to increase.

Investors are advised to steer clear of volatile, low-cost tokens promising quick returns. Instead, experts recommend focusing on more established cryptocurrencies like Bitcoin and Ethereum, which offer stability and can be accessed through regulated exchange-traded funds.