The launch of Haliey Welch's memecoin, known as 'Hawk Tuah', turned out to be a major failure. Here's what happened.
$HAWK is generating controversy.
Haliey Welch, known for the viral video "Hawk Tuah," has experienced significant growth in her career, amassing a large number of social media followers and launching her own podcast. However, her recent foray into the world of cryptocurrency has generated controversy. This week, she joined the list of celebrities who have created their own memecoins by launching $HAWK. However, shortly after its introduction, problems began to arise.
The $HAWK token is part of the growing memecoin market on the Solana blockchain. Welch had anticipated its launch in November, mentioning it during an interview with entrepreneur Mark Cuban, and shared announcements on X (formerly Twitter) indicating that a company called overHere was responsible for creating the token on her behalf. The token's description on the overHere site states that $HAWK is "more than just a meme coin; it's part of the culture" and aims to unite Welch's community, which includes TikTok followers, podcast listeners, and merchandise buyers.
However, the launch did not go as expected. A few minutes after its creation, an alert appeared on Welch's post, indicating that 96% of the token's supply was held by only ten connected wallets. This raises clear concerns, as if these owners decide to sell, the token's value could plummet. In the early hours, $HAWK reached a value of nearly $500 million, but its market capitalization later shrank to $36.6 million, meaning most initial buyers lost money.
Welch, along with the overHere team, attempted to manage the situation after the launch, stating that "Haliey's team has not sold any tokens at all" and blaming "snipers," who use bots to acquire tokens at low prices. They also shared information about the "Hawkanomics," specifying that 10% of Welch's tokens would be locked for 12 months. Finally, they tried to communicate with buyers in a space on X, where Welch stepped back after an hour, saying she would go to sleep, while the team promised to return the next day.
In light of the rapid decline in the token's value, those who bought in the initial moments might not find comfort in these statements, as their investments are at risk.