'Hawk Tuah' Memecoin Plummets Amid Controversy
$HAWK, a Solana-based memecoin inspired by Hailey Welch's viral "Hawk Tuah" quote, experienced a sharp drop of over 90% in market capitalization shortly after its launch. Allegations of market manipulation have surfaced, prompting denials from Welch and her team.
What's the Scoop?
- Another Memecoin Rugpull? HAWK's market cap surged to $400M at launch before plummeting to $37M. Bubblemaps data revealed insiders held 96% of tokens at launch, now reduced to 79%.
- Denials: Welch denies token sales by the "team," emphasizing locked tokenomics.
Bankless Take
Hawk's sharp decline highlights the dangers of memecoin speculation fueled by viral moments. The clustering of 96% of tokens among insiders at launch is a glaring red flag for decentralization and market fairness, even if locks had indeed been in place on any these holdings. Welch's denial will have to be proven out, but the numbers certainly appear to speak for themselves and offer yet another signal of the toxic pvp dynamics that plague all memecoins. This incident reinforces the importance of scrutinizing token distribution and launch mechanics.
If you lost money on $HAWK, contact our firm to learn about your legal rights.
— Burwick Law (@BurwickLaw) December 5, 2024
Our firm represents thousands of nft and token investors in securities matters.
This is attorney advertising.