[UPDATE 12/2024: Hailey Welch provided the following statement via email: "I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter. If you have experienced losses related to this, please contact Burwick Law using the link below: https://www.burwick.law/newclient"]
Hawk Tuah Girl Hailey Welch's $HAWK shitcoin crashed and burned this week, vaporizing nearly half a billion dollars of investor money in what critics are calling a textbook pump-and-dump scheme. The social media influencer's initially surged 900% on Wednesday, before plummeting 95%, reducing its market capitalization from nearly $500 million to $28 million. (As of 12/6/2024 $HAWK's market cap is $37.57 million).
Welch was paid $125,000 to promote the token, according to text messages from her entertainment lawyer, revealed by crypto investigator Stephen Findeisen.
Blockchain analysis shows suspicious trading patterns, with one wallet accumulating 17.5% of the total supply and selling it for $1.3 million within 90 minutes of launch. Data analyst Bubblemaps reported that 96% of tokens were concentrated in related wallets.
"This is one of the most miserable, horrible launches I've ever seen in my life," said Findeisen, who runs the popular Coffeezilla YouTube channel. "They sold 17% of tokens to insiders who had no lock-up period, while only releasing 3% to the public for trading."
During a contentious audio discussion on Twitter Wednesday evening, Welch and project developers failed to address concerns about the token's structure and unusual trading patterns. The team claimed no insider trading occurred, but has not provided evidence to support their position.
"She truly didn't intend to fleece fans," Welch's attorney stated in messages obtained by Rolling Stone magazine.
The SEC has previously warned about celebrity-promoted crypto tokens and their similarity to traditional pump-and-dump schemes. Affected investors have begun organizing potential class-action lawsuits, with several prominent law firms announcing investigations into the token launch.
As of Thursday evening, Welch has not posted further statements about the launch. Welch's lawyer responded to Findeisen's YouTube video with a statement:
"I watched the video. Just to clarify—the 50% of net proceeds mentioned was from the allocation of tokens (10%, locked for one year, with 3-year vest thereafter). And wouldn't be realized until if/when she sold them. Out of her 50% she would have to pay her non-crypto team too, so in reality, she would likely only hold 3.5% of the tokens withdrawn (if at all) on the above schedule."
Previously:
• Pharma-bro Shkreli claims he helped launch Trump crypto coin with Barron, now worth $0.0004 after mysterious sell-off
• Hooters stock price jumps 50% when company says the word 'blockchain'
• AI chatbots spawn shock meme cult, birth $258 million crypto empire
