Haliey Welch, widely recognized as the “Hawk Tuah Girl,” announced on Friday that she is “fully cooperating” with legal representatives of individuals impacted by the recent decline of the cryptocurrency meme coin $HAWK. Welch, who was instrumental in launching the coin named after her viral catchphrase earlier this month, has faced backlash after the coin’s value significantly dropped soon after its launch. Allegations of the coin being a scam arose, leading to investor dissatisfaction.
Following the launch of $HAWK, which saw its market capitalization rise to $491 million on December 4, the coin’s value dramatically decreased by over 90% within hours. Investors have since filed a lawsuit in the Eastern District of New York against the coin’s creators, including the company overHere Ltd. and its founder, Clinton So. They allege that the promotion and sale of the cryptocurrency were done without proper registration with the SEC. Though Welch is not named as a defendant in the lawsuit, she has publicly acknowledged the issues surrounding the coin and is encouraging those who incurred financial losses to reach out to the legal team.
Welch took to X (formerly Twitter) to express her commitment to assisting the legal efforts and addressing the concerns of her investors and fans. This situation highlights the potential risks associated with investing in cryptocurrencies, especially meme coins, which often see volatile price fluctuations influenced by social media hype and celebrity endorsements.
In the wake of the controversy, Welch’s past remarks about her initial skepticism toward cryptocurrencies were revisited. However, her perspective shifted when she started to view the technology as a new avenue for engaging with her audience.
Memecoins, like $HAWK, often face challenges as their value can soar or plummet based on speculative trading and social media trends. The ongoing scrutiny of celebrity endorsements in the cryptocurrency market has led to significant legal challenges, drawing attention to the importance of transparency and accountability in such promotions.
While the situation remains complex, Welch’s cooperation with legal representatives demonstrates a willingness to engage with the community and seek resolution. This incident serves as a reminder for potential investors to conduct thorough research and approach investment opportunities in cryptocurrencies with caution.
Overall, this story underlines the rapid evolution of the cryptocurrency landscape and the necessary vigilance both influencers and investors must maintain in this volatile market.