(Scypre.com) – Hailey Welch, the woman behind the viral “Hawk Tuah” meme, has come under fire following the disastrous launch of her $HAWK meme coin on the Solana blockchain. Initially hailed as a meteoric success, the coin’s value skyrocketed to $500 million shortly after its debut on Wednesday. However, within minutes, the price plummeted to under $60 million, leaving investors outraged and Welch embroiled in controversy.
Criticism and Allegations of Fraud
In the days following the launch, critics flooded social media with accusations that the $HAWK coin was a fraudulent scheme. A growing number of users reported financial losses and began filing complaints with securities regulators, alleging misconduct. Burwick Law, a prominent legal firm, announced its involvement in the matter. In a post on X (formerly Twitter), the firm stated, “We are representing clients in matters related to $HAWK. If you’ve experienced losses and would like to explore your options, learn more.”
This graph is also representative of Hailey Welch’s career after one of the worst advised business decisions ever made $HAWK pic.twitter.com/5Jb4vDwiaa
— Aiden HIKO | AK (@aidenHIKO) December 4, 2024
The sentiment on social media was equally unforgiving. One user wrote, “I hope she gets locked up so I don’t have to see her on my timeline anymore,” while another demanded accountability, saying, “Justice for Hawk Tuah scammed. She deserves some jail time to make an example and show other celebs not to abuse their followers.” Others mocked Welch, with comments like, “She will Hawk Tuah to stay out of prison,” and, “This chick needs to disappear as fast as she came on the public agenda.”
Legal and Social Implications
The incident has highlighted concerns over celebrities using their influence to promote volatile cryptocurrencies. Legal experts suggest Welch could face serious consequences if the $HAWK coin is found to have violated securities regulations. Burwick Law’s outreach signals the potential for class-action lawsuits, which could add to the mounting scrutiny around Welch and her team.
Welch’s manager attempted to address the criticism, explaining the coin’s purpose was to engage fans in a new way. “We don’t want to break securities laws. We would say that we’re almost, like tokenizing, in a sense, Hailey’s fan base,” the manager stated. However, this explanation did little to quell the outrage.
Welch Responds to the Backlash
Welch herself took to X to clarify her stance and defend her team’s actions. She denied any foul play, writing, “Team hasn’t sold one token and not 1 KOL was given 1 free token. We tried to stop snipers as best we could through high fees in the start of launch on @MeteoraAG.”
Despite her statement, the backlash has continued to grow, with critics questioning her understanding of the legal and ethical responsibilities tied to launching a cryptocurrency.
A Broader Discussion on Crypto and Celebrity Influence
The $HAWK coin saga has reignited debates about the risks of celebrity-endorsed cryptocurrencies. In recent years, several high-profile figures have faced lawsuits and regulatory scrutiny for promoting crypto projects that later faced allegations of fraud or mismanagement. Welch’s situation may serve as a cautionary tale for other influencers considering similar ventures.
As investigations continue, Welch’s reputation hangs in the balance, and her fan base remains divided. While some supporters have defended her intentions, many others are calling for accountability and justice for those who lost money in the $HAWK coin collapse. Whether this incident marks the end of Welch’s crypto ambitions or prompts stricter oversight of influencer-backed financial ventures remains to be seen.