On December 4, 2024, internet personality Hailey Welch launched the $HAWK token, leveraging her fame as the “Hawk Tuah” girl to attract trusting fans.
What began as a promising cryptocurrency project quickly unraveled into a carefully orchestrated rug pull, leaving investors with devastating losses.
The launch initially generated excitement, with $HAWK reaching a $500 million market cap as bots and retail investors rushed in. However, behind the scenes, the project’s foundation was riddled with red flags. A single wallet purchased 97% of the token’s supply using 4,195 SOL ($1.01 million), only to dump the tokens for 11,616 SOL ($1.66 million) in rapid succession, crashing the price by 95% and wiping out retail investors’ funds.
现在的新 Meme 做局这么不走心了嘛😂 开盘速通 2 亿，五分钟拉到 5 亿，17 小时后的现在 2900 万美金…$HAWK 由网红 Haliey Welch 于今早创建，随后一新地址花费 4195.25 SOL（100.9 万美金）高调买走了 97% 的筹码，然后光速出货赚走 11616 SOL（166 万美金）
钱包地址 https://t.co/1FlFGP2P2N pic.twitter.com/JUIWRXVziW
— Ai 姨 (@ai_9684xtpa) December 5, 2024
The Hidden Risks
1. Centralization: 97% of $HAWK’s supply was controlled by interconnected wallets. This centralization, undisclosed by the team, guaranteed a catastrophic dump.
2. Zero-Day Unlock: 17% of the supply was sold to offshore investors with no vesting period. These investors could immediately sell their holdings, exploiting retail buyers. The team labeled this “strategic allocation,” but it was a calculated move to offload risk.
3. Pre-Revealed Contract Address: Publicizing the contract address before launch allowed bots to snipe tokens at the lowest prices, driving up liquidity and ensuring a false market cap surge.
4. Exorbitant Fees: The contract imposed a 15% transaction fee, funneling over $2 million into a Cayman Islands foundation—a shell entity likely shielding the creators from liability.
THE HAWK TUAH MEMECOIN RECAP
Hailey Welch teamed up with a few people to launch the $HAWK token in an attempt to capitalize on her fame as the "Hawk Tuah" girl. The result was a blatant scam that is now landing them all in hot water and will lead to lawsuits.
Hailey built a lot…
— DivXMaN (@crypto_div) December 5, 2024
Hailey Welch’s goodwill and fame became tools for exploitation, leading her fans into financial ruin. This blatant rug pull underscores the importance of due diligence in cryptocurrency investments. While the team profited, retail investors bore the brunt of this calculated scam. Legal consequences for those involved now loom large.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: kebox/123RF // Image Effects by Colorcinch
