The cryptocurrency world has seen countless memecoins come and go, but few have crashed as spectacularly as HAWK. Launched in December 2024 by social media personality Haliey Welch—better known as the “Hawk Tuah Girl”—the token skyrocketed in value before collapsing by 91% within hours. The controversy surrounding HAWK has since sparked accusations of a pump-and-dump scheme, legal scrutiny, and investor outrage, turning it into one of the most talked-about crypto scandals of the year.
From Viral Fame to Crypto Disaster
Haliey Welch became an internet sensation after a nine-second viral video, where she humorously exaggerated the act of spitting. The Tennessee native quickly leveraged her newfound fame into a successful career, launching a podcast, Talk Tuah With Haliey Welch, produced by Jake Paul’s company. The show gained massive popularity, featuring celebrity guests like Mark Cuban, Wiz Khalifa, and Whitney Cummings, and even reached the top five on Spotify.
Welch built a strong digital presence with millions of followers across Instagram, TikTok, and X. She made high-profile appearances, from throwing the ceremonial first pitch at a New York Mets game to launching an AI-powered dating app. Given her influence, it was no surprise when she ventured into cryptocurrency.
The Launch and Collapse of HAWK
Welch partnered with the OverHere team to introduce HAWK, marketing it as a groundbreaking memecoin designed to “redefine the crypto space” and connect her fanbase with blockchain technology. She positioned the token as a way to combat “imposter” cryptocurrencies using her name and insisted in an interview with Fortune that it was “not just a cash grab.”
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The hype paid off—at first. Upon launch, HAWK’s market cap soared to $490 million, fueled by Welch’s social media reach. However, within hours, the price crashed by 91%, dropping its market cap to just $60 million. Investors who bought in at the peak were left holding the bag, with some claiming to have lost life savings.
Crypto investigator Coffeezilla accused Welch and her team of orchestrating a pump-and-dump scheme, artificially inflating the price before insiders cashed out. “They’re not targeting crypto bros; they’re mostly targeting actual fans who have never been involved in the crypto space before,” he said in a viral video with over 6 million views.
Welch’s legal team denied the accusations, stating that she had not sold any tokens and that only 3.5% of the total supply was allocated to her after paying her non-crypto team. However, blockchain analysts found evidence suggesting that team members had been offloading tokens since the launch.
The Crypto Scam Playbook: Was HAWK a Rug Pull?
HAWK’s rapid collapse bears the hallmarks of a classic rug pull—a crypto scam where developers hype up a token, attract investors, and then cash out, leaving others with worthless assets. Rug pulls can take several forms, including:
- Liquidity theft – Developers drain liquidity pools, making it impossible for investors to sell their tokens.
- Dumping pre-mined tokens – Developers sell massive amounts of tokens they reserved for themselves.
- Malicious smart contracts – Code that prevents investors from selling while allowing insiders to cash out.
While Welch claimed external traders were responsible for HAWK’s price drop, community notes on X posts suggested otherwise, pointing to insider sales. Regardless of intent, the project’s downfall follows a pattern seen in previous rug pulls.
Legal Trouble Looms for Haliey Welch
The controversy surrounding HAWK has already led to legal complaints being filed with the U.S. Securities and Exchange Commission (SEC). The SEC has previously fined celebrities like Kim Kardashian $1.26 million for undisclosed crypto promotions, and Logan Paul is facing lawsuits over his involvement in failed NFT projects.
A former U.S. Department of Justice prosecutor told Fortune that Welch could face civil or criminal charges, depending on whether she knowingly participated in fraudulent activities. If proven, she could be held liable for investor losses and face regulatory penalties.
The HAWK incident underscores the risks of celebrity-backed cryptocurrency projects. Whether Welch was a willing participant or an uninformed promoter, the outcome remains the same—investors lost millions, and trust in meme coins took another hit. For those navigating the crypto space, the lesson is clear: always research thoroughly before investing, regardless of how popular or influential the promoter may be.