Haliey Welch, renowned as the “Hawk Tuah Girl,” has finally addressed the fallout surrounding the recent crash of her meme coin, $HAWK, which plummeted just hours after its launch. This comes in the wake of a lawsuit filed in New York against the creators of $HAWK by investors who claim that overHere Ltd., its founder Clinton So, influencer Alex Larson Schultz, and the Tuah The Moon Foundation engaged in unlawful promotion and sale of a cryptocurrency that was reportedly not properly registered. Notably, Welch is not named as a defendant in this legal action.
Meme coins, like $HAWK, often draw on internet humor and trends, which can lead to extreme volatility in their market performance. Upon launching on December 4, the $HAWK token initially soared to a market capitalization of $490 million before suffering a dramatic 95% drop, which left investors facing collective losses of $151,000. The lawsuit further alleges that Welch’s fame was exploited to boost the token’s visibility, and it accuses the team of insider trading and misleading promotional tactics.
Breaking her silence, Welch expressed her seriousness regarding the situation and her resolve to assist affected investors. Through a post on X, she stated, “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.” She has also encouraged those who incurred losses to reach out to Burwick Law for support, clarifying that she did not actively participate in the token’s launch strategy.
Mark Cuban, a billionaire investor, has voiced his support for Welch amid the controversy, suggesting that she did not fully comprehend the situation. He stated that she relied on the judgment of those around her during the coin’s launch.
In this challenging period for Welch and affected investors, her commitment to transparency and accountability could serve as a beacon of hope for those impacted by the crash, illustrating the importance of responsible promotion and community support within the cryptocurrency space. The unfolding legal proceedings may provide not only clarity but also an opportunity for greater regulation in the meme coin market to protect future investors.