A cryptocurrency launched by internet personality Haliey Welch, the 'Hawk Tuah Girl' has become embroiled in controversy after losing $440m of its value within minutes of trading. The dramatic collapse has drawn accusations of market manipulation and insider trading from a famous researcher.
The $HAWK token, launched on the Solana blockchain, saw its market capitalisation plummet from $500m to $60m in its first 20 minutes of trading on December 4. The precipitous decline prompted an immediate investigation by cryptocurrency fraud researcher Stephen "Coffeezilla."
Blockchain data revealed that certain traders, identified as "snipers," liquidated more than 135m $HAWK tokens in a coordinated sell-off. A single transaction generated profits exceeding $1.3m.
"This is one of the most miserable, horrible launches I've ever seen," Coffeezilla said during a confrontational livestream with Welch. He alleged that creator accounts linked to the project engaged in insider trading. "When you are charging 15%, you are profiting from the rug pull."
Members of Welch's team rejected the accusations. "Snipers sniped it up to an insane market cap and dumped it. That was not us," said one team representative. Welch, known for her viral "Hawk Tuah" social media presence, has not directly addressed the specific allegations of market manipulation.
Several investors have filed complaints with the US Securities and Exchange Commission. The regulatory body has not yet indicated whether it will investigate the matter.
The incident has intensified scrutiny of meme-based cryptocurrencies, which have attracted significant retail investment despite their notorious volatility. The $HAWK token's dramatic decline represents one of the fastest collapses in recent cryptocurrency history.
The controversy highlights growing concerns about the intersection of social media influence and cryptocurrency markets. Questions remain about the responsibility of internet personalities who leverage their following to promote digital assets.
Market observers note that the speed of the $HAWK token's collapse suggests sophisticated trading mechanisms were deployed during the launch. These technical aspects have drawn particular attention from cryptocurrency analysts studying the incident.