The much-anticipated HAWK Memecoin, backed by social media personality Hailey Welch, has plunged into controversy following a jaw-dropping 90% price crash within hours of its launch. The token, which initially soared over 900%, accumulating a market cap of $490 million, now faces intense backlash from investors accusing insiders and snipers of manipulating its price.
From Moonshot to Meltdown
HAWK, launched on 4th December at 10 PM UTC, debuted at $0.005492 and skyrocketed to a peak of $0.04916. However, in a shocking turn of events, the price plummeted 91%, leaving many investors in significant losses.
Onchain data from DEXScreener highlights troubling trends. Reports show snipers capitalized on the surge, dumping over 135 million HAWK tokens and pocketing a staggering $1.3 million in a single trade. Further analysis suggests that 80% of HAWK's total supply is controlled by a handful of insider wallets, sparking fears of centralized control and pre-planned dumps.
Community Fury and Legal Risks
The situation escalated as accusations of insider trading spread like wildfire. Community notes on X revealed that 96% of HAWK's supply is held by 10 interconnected wallets, which have been systematically selling tokens since the launch.
Investors have flooded Welch’s social media with demands for accountability, and several have reportedly filed complaints with the SEC. These legal troubles could spell further problems for Welch and her team, especially as she denies any involvement with insider wallets or assigned tokens for promotion.
What’s Next for HAWK?
As the dust settles, the once-promising memecoin is at risk of becoming a cautionary tale. With investors questioning the transparency of Welch and her project, it remains unclear whether HAWK can recover from the backlash or if this marks the beginning of its end.