Hawk Tuah influencer speaks out after memecoin rug pull allegations

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen it all – from ICO mania to DeFi summer, and now, memecoins. The latest saga involving Hailey Welch and Hawk Tuah (HAWK) token has left me shaking my head in disbelief.

In simpler terms, Hailey Welch, well-known for her popular ‘Hawk Tuah’ TikTok video, has spoken out following the swift rise and fall of a cryptocurrency using her username, which occurred shortly after it was launched in December.

In a post dated December 20th, I confirmed my full cooperation with legal representatives acting on behalf of the investors involved in the Hawk Tuah (HAWK) token.

Cryptocurrency users have brought forward a legal action against the makers and associates of the project, with Welch not being included among the defendants in this case. The plaintiffs claim that these individuals were involved in the advertisement and sale of an unregistered security offering.

In my role as an analyst, I’d like to share some insights about a recent event: On December 4th, the HAWK token was introduced to the market. Initially, it soared to a market capitalization of approximately $500 million. However, within a short span, its value plummeted by an astonishing 90%. This sudden drop has led many users to express concerns about a potential exit scam, often referred to as a ‘rug pull’. In response to these concerns, I, along with others, have urged anyone affected by this situation to consult legal professionals. I assure you that we are taking this matter extremely seriously and are dedicated to seeking resolution.

From TikTok stardom to memecoin promoter?

Originally known as Welch, who gained internet notoriety when a June video of her explaining a sexual act became popular on TikTok, has since leveraged this event to establish her “Hawk Tuah” persona and brand. Her image was incorporated into the HAWK cryptocurrency, and she took to social media to endorse the meme coin.

Based on blockchain records, a wallet swiftly acquired approximately 18% of the HAWK tokens shortly following the project’s launch, later selling it for over $1 million in earnings. Unfortunately, numerous memecoin investors experienced significant financial losses after the token’s price surged and plummeted.

It’s uncertain if Welch or the founders of the memecoin project might be subjected to criminal or regulatory lawsuits in the U.S. due to the token’s launch. Under the leadership of Gary Gensler, the Securities and Exchange Commission (SEC) has generally considered most tokens as falling under its jurisdiction as securities. Yet, control of the SEC is expected to shift to the Republicans starting from January.

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2024-12-20 21:42