Memecoin Skyrockets Before Plummeting 90%, Sparking Outrage and Legal Concerns

A trending memecoin recently made headlines after experiencing a dramatic rise followed by an equally swift crash, sparking controversy across the crypto space.

Hawk Tuah (HAWK) launched on December 4, briefly soared to a market cap of $490 million before plummeting by 91%, dropping to $41.7 million in under three hours. This volatility triggered accusations of insider trading and bot manipulation, with data showing that a small group of wallets controlled up to 90% of the token’s supply at launch.

Influencer Haliey Welch, who introduced the token, denied any insider activity, stating that her team hadn’t sold any tokens and that no influencers were given free coins. She also claimed that the token was launched using the decentralized platform Meteora to minimize sniping risks.

However, on-chain data revealed that one wallet bought 17.5% of the supply for $993,000 and later sold it for a $1.3 million profit.

The incident has led to investor outrage, with some claiming significant losses. One person shared a $43,000 loss, while another swapped $1.4 million of another memecoin into the new token, only to lose $1.3 million.

Amid the backlash, law firms are offering legal assistance to those who lost money, and some individuals have already filed complaints with the SEC.