Hawk Tuah's Cryptocurrency Venture under Scrutiny for Alleged 'Rug Pull' following Massive Sell-off
Hailey Welch, famously known online as the "Hawk Tuah girl" after her viral street interview, introduced her very own cryptocurrency on Wednesday. Welch, who turned her brief internet fame into a comprehensive new media venture with a podcast, found herself under scrutiny after the market value of her coin soared to $490 million, only to plummet by over 90% within just a few hours.
The Hawk Tuah cryptocurrency, symbolized as HAWK, was released on the Solana blockchain and was likened to a memecoin – a digital currency that experiences significant price increases due to widespread online attention. In an interview with Fortune, Welch claimed that HAWK was not solely a money-making scheme, although it's challenging to perceive how any memecoin could serve any other purpose except for generating astronomical profits based on digital hype.
Upon its launch, HAWK was swiftly accused of involvement in a 'rug pull,' a term describing the strategy of releasing a coin, generating tremendous hype, and subsequently dumping the coins to drain all liquidity, leaving unsuspecting investors holding practically worthless tokens. The crypto news site, CoinTelegraph, reported huge volumes of coin sales in the hours following its launch, causing the market value to plummet from $490 million to a mere $41.7 million within a few hours.
However, on Wednesday, Welch took to Twitter, asserting that neither she nor any member of her team had sold any of their cryptocurrency and that no Key Opinion Leader (KOL) had been granted any free tokens. Welch also mentioned that efforts had been made to prevent 'sniper' activity by setting high fees at the launch, only to later reduce them. Representatives for Welch did not provide immediate comment regarding the cryptocurrency when contacted on Thursday.
Despite this, the controversy surrounding HAWK's origin and its founder's motives points to the fundamental issue with memecoins. Memecoins primarily serve for speculation and wealth extraction, with no inherent value making them attractive investment options. Furthermore, Welch's interview with Fortune suggested no innovative plans for HAWK, reinforcing doubts about its potential longevity in the crypto market.
As noted by Fortune, Welch previously harbored skepticism towards cryptocurrency, viewing it as a mere scam and easy way to lose money. Yet her interest in the digital currency changed after attending conferences. When quizzed about her fascination with crypto, Welch expressed that it had the potential to create a “really good thing” and enabled better interaction with her fans. Although she was unaware of any specific benefits for her memecoin holders, Welch's manager hinted at an increase in fan engagement associated with the coin, without providing further details. Ultimately, whether or not one decides to invest in this coin remains solely their choice, and as ever with crypto, risk is an inherent component of any investment.
The future of HAWK, Welch's cryptocurrency, remains uncertain due to its association with memecoins and the controversies surrounding them. Despite Welch's assertions, the tech-savvy public is wary of its potential longevity and value, given its primary purpose of speculation and wealth extraction. Welch's own skepticism towards cryptocurrency in the past now seems overshadowed by the allure of tech innovation and fan engagement it can provide.
