How Hawk Tuah Girl Stole $50m From Fans Using A Meme Coin

The Hawk Tuah meme coin (HAWK) skyrocketed in value to a $490million market cap shortly after launch but collapsed by 95% within hours due to suspected ‘pump-and-dump’ tactics by a few wallets controlling the majority of the token supply. 

Meme coin rug pulls, or pump-and-dumps aren’t new in the crypto industry. More specifically, celebrity-endorsed meme coins have a long history of failing or ending up being scams. From Logan Paul to Floyd Mayweather and Kim Kardashian, the list of failed celebrity meme coins is extensive. The newest addition to this list is Hailey Welch – the viral ‘Hawk Tuah Girl’.

For weeks, Hailey had been promoting and creating hype for her Solana meme-coin HAWK. In hindsight, Hailey is the perfect celebrity to launch a meme coin, as her fame is directly linked to an internet meme. So, understandably, the meme coin generated notable buzz within the community.

However, unsurprisingly, the HAWK meme coin looks like another celebrity-endorsed pump-and-dump token. Here’s how the Hawk Tuah Girl stole nearly $50m from her fans.

The Hawk Tuah meme coin scam explained

In December 2024, Hailey Welch, known as the ‘Hawk Tuah Girl’ from a viral internet meme, launched a crypto called Hawkcoin on the Solana blockchain. Shortly after its release, the token’s value surged to a market cap of approximately $490m.

However, within hours, it plummeted by 95%, leading to significant financial losses for investors and sparking allegations of a ‘pump-and-dump’ scheme.

Blockchain analysis revealed that a small number of wallets controlled between 80% to 90% of the HAWK supply at launch. These entities, known as ‘snipers’, purchase large quantities of new tokens immediately upon release and sell them quickly for profit, causing the token’s value to crash.

One wallet, for instance, acquired 17.5% of the total supply seconds after launch and sold the tokens for a profit of $1.3m.

A classic meme coin rug pull

Welch and her team faced accusations of insider trading and orchestrating a ‘rug pull’ — a scam in which developers abandon a project and take investors’ funds. They denied these allegations, stating that neither the team nor any key opinion leaders (KOLs) were given free tokens or sold any tokens during the launch. They also claimed to have implemented high fees at the start of the launch to deter snipers.

Despite these assertions, the rapid devaluation of $HAWK led to widespread criticism. Crypto investigator Coffeezilla labeled the project a scam during an online conference, highlighting the poor tokenomics and the substantial profits generated from fees while investors suffered losses.

In response to the controversy, law firm Burwick Law invited affected investors to seek legal advice, indicating potential legal repercussions for those involved in the token’s launch.

The Hawkcoin incident shows the risks associated with investing in meme coins and the importance of thorough due diligence. It also highlights the need for clearer regulations in the cryptocurrency space to protect investors from similar schemes.

1. 01.

   What is a meme coin?

   

   A meme coin is a cryptocurrency inspired by internet memes or jokes. It often has little utility or long-term purpose and relies on community hype for value. Popular examples include Dogecoin, Shiba Inu, and Pepe.

2. 02.

   What are crypto pump and dump schemes?

   

   Crypto pump-and-dump schemes involve artificially inflating a token’s price through misleading promotion and then selling off large holdings, causing the price to crash and leaving other investors at a loss.