Hailey Welch, a 22-year-old social media influencer, is at the center of a storm following the catastrophic failure of her cryptocurrency, Hawkcoin. Welch, who gained fame as the “Hawk Tuah Girl” from a viral interview, ventured into cryptocurrency by launching Hawkcoin in December 2024. The Solana-based memecoin, initially valued at $500 million, quickly spiraled into controversy as its value plummeted, triggering accusations of fraud and financial mismanagement.
Hawkcoin’s Sudden Rise and Fall
Hawkcoin’s early success was nothing short of astonishing, captivating investors with its meteoric rise. However, within days, the coin’s value fell dramatically to $26.4 million, leaving many investors facing severe losses. This led to widespread accusations of a “pump-and-dump” scheme, with insiders inflating the coin’s value before offloading their holdings for massive profits.
Blockchain platforms, such as Bubblemaps and Dexscreener, revealed that a vast majority of Hawkcoin’s supply was controlled by insiders at launch. One wallet alone acquired 17.5% of the token’s supply and made a substantial profit, raising suspicions of a coordinated effort to manipulate the coin’s value.
Allegations of Fraud and Mismanagement
Adding to the controversy, Clinton So, the founder of the launchpad overHere, is accused of converting the Tuah Foundation (behind Hawkcoin) into an offshore company to bypass securities regulations. So allegedly sold 17% of the coin’s supply shortly after launch, contributing to the sharp decline in value.
Despite the growing storm, Welch initially refrained from commenting. When she did finally address the allegations, she denied any wrongdoing. In a statement on X (formerly Twitter), Welch claimed she was fully cooperating with her legal team and insisted that automated bots were responsible for manipulating Hawkcoin’s price. She also stated that her team did not sell any tokens and that no Key Opinion Leaders (KOLs) were given free tokens.
Legal Action and Investor Lawsuits
As the scandal deepened, a group of investors filed a class-action lawsuit in New York, alleging that they were misled into believing Hawkcoin was a registered security. The lawsuit names overHere and Alexander Larson Shultz, a crypto entrepreneur and musician, as defendants. Shultz, known as “Doc Hollywood” in the crypto world, is accused of mishandling funds and failing to maintain transparency.
Social media has been inundated with posts from frustrated investors, with many criticizing Welch’s flashy lifestyle and the risks of unregulated investments. The incident has reignited calls for stricter regulations on influencer endorsements in the cryptocurrency space.
The Broader Impact on the Cryptocurrency Industry
The Hawkcoin collapse has raised significant concerns about the role of influencers in the cryptocurrency market. Experts warn that speculative investments driven by social media endorsements can lead to catastrophic outcomes for unsuspecting investors. As the crypto industry faces mounting scrutiny, there are calls for greater transparency and accountability.
Lessons from the Hawkcoin Scandal
The rise and fall of Hailey Welch’s Hawkcoin highlights the risks of unregulated financial ventures and the importance of conducting thorough due diligence before investing. While Welch continues to defend her actions, the scandal serves as a stark reminder of the volatility and unpredictability of cryptocurrency markets. It remains to be seen whether she can recover from this scandal, but the incident has already left a lasting impact on her reputation and the broader cryptocurrency community.
