The crypto market has seen its fair share of pump-and-dump schemes, where influencers manipulate low-cap tokens for personal profit. Hailey Welch (Hawk Tuah Girl) and Luke Belmar have both come under scrutiny for their roles in such operations. Their strategies share a striking similarity: hyping obscure coins—like Welch’s focus on Hawk and Belmar’s on Pengu—while leveraging exclusive groups to magnify the effect. Let’s examine their methods, find the common ground, and uncover lessons to protect your portfolio.
The Pump-and-Dump Strategy
The general scheme follows a playbook:
1. Acquire Low-Cap Coins Early:
Influencers and their teams buy large amounts of tokens when prices are low and liquidity is thin.
2. Create Hype:
Through social media, private groups, or paid signals, they push the narrative that these tokens are about to “moon.”
3. Sell at the Peak:
As their followers drive up the price, the insiders dump their holdings, leaving retail traders to bear the losses.
Hailey Welch’s Approach: Hyping Hawk
Hailey Welch, known as Hawk Tuah Girl, allegedly orchestrated pump-and-dump schemes centered around coins like Hawk:
• Exclusive Groups: Welch reportedly guided followers through private channels, promising insider knowledge and “life-changing gains.”
• Urgent Hype: Using emotional appeals and urgency, she encouraged her audience to buy into Hawk at inflated prices.
• The Dump: Her team exited at the peak, profiting at the expense of retail traders.
Luke Belmar and Pengu: A Memecoin Playbook
Luke Belmar’s operations with Pengu followed a similar structure:
• Paid Signal Groups: Charging 1 ETH for access, Belmar claimed to provide high-value signals, including entry points for coins like Pengu.
• Coordinated Pumps: His audience of paying members would rush to buy, creating artificial demand.
• Strategic Exit: Like Welch, Belmar and his team cashed out, leaving latecomers with heavy losses.
Key Similarities Between Welch and Belmar
1. Exclusive Access:
Both relied on private groups or paid memberships to build hype around specific coins.
2. Hyped Coins (Hawk vs. Pengu):
They selected low-cap, easily manipulated tokens, often with meme-like qualities or minimal utility.
3. Leveraging FOMO:
Emotional manipulation was a central tactic, with promises of massive returns and limited-time opportunities.
4. Retail Losses:
Both cases ended with retail traders holding devalued coins as the orchestrators exited with profits.
The Risks of Following Influencers
1. Low-Cap Coins Are Easy Targets:
Tokens like Hawk and Pengu are highly volatile due to their small market caps and low liquidity.
2. Exclusive Signal Groups Often Benefit the Organizer:
Charging entry fees (e.g., Belmar’s 1 ETH) is a common tactic to create exclusivity while using followers’ trades to pump prices.
3. Pump-and-Dump Schemes Exploit Retail FOMO:
Promises of guaranteed gains often mask the organizers’ true intent: cashing out at your expense.
How to Spot and Avoid These Schemes
1. Be Skeptical of Paid Groups:
Exclusive signal groups often prioritize the organizer’s profits over yours.
2. Analyze the Token:
Look for utility and liquidity. If a coin seems obscure or overly hyped without substance, tread carefully.
3. Avoid Emotional Decisions:
Don’t let urgency or promises of quick gains cloud your judgment.
4. Research the Influencer:
Understand their history and credibility. Patterns of similar behavior (e.g., Welch with Hawk and Belmar with Pengu) are major red flags.
Lessons from Hawk and Pengu
The Hawk and Pengu cases are cautionary tales of how influencers manipulate markets for personal gain:
• Hawk Tuah Girl and Luke Belmar exploited their influence to pump specific coins while using exclusive groups to create demand.
• Retail traders bore the brunt of the losses, highlighting the dangers of blindly following influencers in the crypto space.
Final Thoughts
Pump-and-dump schemes like those involving Hailey Welch’s Hawk and Luke Belmar’s Pengu are stark reminders of the risks posed by influencer-driven trading strategies. To navigate the crypto market safely:
• Prioritize research and due diligence.
• Avoid FOMO and exclusive signal groups.
• Focus on projects with real utility and strong fundamentals.
Stay informed with The CryptoStrategist—your trusted guide to safe and successful crypto trading.