Haliey Welch, popularly known as the “Hawk Tuah Girl,” has stated her commitment to cooperating with legal representatives for individuals affected by the recent downturn of the meme cryptocurrency $HAWK. Welch was instrumental in launching the coin earlier this month, named after her viral phrase. However, shortly after its launch, the coin’s value experienced a dramatic decline, leading to allegations that it was a scam. Welch’s team attributed the drastic market changes to “snipers,” automated bots that react quickly to trading signals.
Investors of the $HAWK cryptocurrency have initiated legal action against its creators, including the company overHere Ltd., Clinton So, the Tuah The Moon Foundation, and influencer Alex Larson Schultz. This lawsuit, filed in the Eastern District of New York, asserts that the $HAWK coin was promoted and sold without proper registration with the Securities and Exchange Commission (SEC). Notably, Haliey Welch is not listed as a defendant in the suit.
In response to the lawsuit, Welch took to social media to express her seriousness regarding the situation and encouraged affected investors to reach out to the law firm Burwick PLLC. She stated, “I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted… to uncover the truth, hold the responsible parties accountable, and resolve this matter.”
Legal representatives Burwick PLLC and Wolf Popper LLC indicated that the token initially soared to a market capitalization of $491 million on December 4, but its value plummeted over 90%, dropping below $100 million shortly thereafter. This volatility adversely impacted many investors, particularly newcomers drawn in by Welch’s involvement.
Welch has only recently entered the cryptocurrency space, inspired by her viral ascent which began in June. She had previously expressed skepticism about cryptocurrency, viewing it as a potential scam. Yet, after attending several conferences, she began perceiving it as a way to engage with her fan base. Following the tumultuous launch of $HAWK, she communicated that neither she nor the team behind the coin had sold their holdings.
The trend of memecoins, driven by social media popularity and internet culture, can be highly unpredictable and susceptible to speculative trading. While Welch’s involvement in $HAWK has sparked controversy, it also sheds light on the broader issues concerning transparency and accountability in cryptocurrency promotions—an area increasingly under scrutiny.
Overall, this scenario underlines the importance of due diligence in the cryptocurrency market, especially for new investors. Despite the current challenges, it could serve as an educational moment for the community, fostering better practices and caution among future cryptocurrency projects.