Hawk Tuah Coin: From Viral Success to Sudden Collapse - What’s Next?

The Hawk Tuah memecoin, inspired by viral influencer Haliey Welch, made headlines with its meteoric rise and subsequent crash, leaving many investors stunned. Launched on December 4, 2024, the coin's value initially surged, hitting a peak market capitalization of $490 million. However, within hours, it plummeted to $41.7 million, a staggering 91% decline, as reported by DexScreener. This dramatic turn of events has ignited debates about the coin's legitimacy and the risks associated with investing in memecoins.

The Launch and Immediate Crash

The Hawk Tuah coin launched with much fanfare, leveraging Welch’s popularity as a viral influencer and podcast host. Despite the initial hype, the coin faced issues almost immediately. Data from Bubblemaps and DexScreener revealed that insider wallets and snipers controlled 80-90% of the coin’s supply at launch. This led to significant price manipulation, as snipers rapidly bought up tokens and dumped them for profit.

One such wallet reportedly acquired 17.5% of the token supply for 4,195 Wrapped Solana (WSOL) and sold it for a $1.3 million profit within 90 minutes. These actions caused the coin’s value to nosedive, sparking outrage among investors.

Welch's Defense

Haliey Welch has denied allegations of insider trading or pump-and-dump schemes. In a December 5 post on X (formerly Twitter), Welch stated:

Team hasn’t sold one token and not 1 KOL was given 1 free token. We tried to stop snipers as best we could through high fee’s in the start of launch on Meteora.

Welch emphasized that the coin was launched on the decentralized liquidity protocol Meteora to mitigate sniping risks. However, data from Solana block explorer Solscan suggests that preventative measures were insufficient, as some wallets still managed to exploit the launch.

Regulatory Concerns and Legal Implications

The controversy has drawn the attention of both regulators and legal experts. Several investors have filed complaints with the SEC, alleging fraudulent practices. Burwick Law, a firm specializing in crypto-related cases, has begun reaching out to affected investors to explore potential legal actions.

Observers speculate that Welch’s team may face scrutiny for failing to prevent market manipulation effectively. If regulatory bodies deem the launch to be a pump-and-dump scheme, it could result in significant legal and financial consequences for Welch and her team.

Investor Sentiment and Market Impact

The crash of Hawk Tuah coin serves as a cautionary tale for crypto investors. Memecoins, while appealing due to their viral nature, often lack fundamental value and are highly susceptible to market manipulation. The rapid rise and fall of Hawk Tuah coin highlight the need for due diligence and a cautious approach when investing in such tokens.

Future Outlook

While the immediate future of Hawk Tuah coin looks uncertain, Welch's team may attempt to rebuild trust through increased transparency and improved security measures. However, regaining investor confidence will be challenging given the current backlash and regulatory scrutiny.

For the broader crypto market, this incident underscores the importance of stricter regulations to protect investors and ensure fair trading practices. As the crypto space evolves, incidents like this may lead to more robust frameworks and oversight.



Hawk Tuah coin's dramatic rise and fall reflect the volatile nature of memecoins and the risks associated with speculative investments. While Welch continues to deny wrongdoing, the incident raises critical questions about accountability and transparency in the crypto industry. Investors are advised to exercise caution and thoroughly research before participating in such ventures.