HAWK Crypto Scam: Hawk Tuah Girl Breaks Silence On December Rug Pull

Hailey Welch, famously known as the “Hawk Tuah” girl, has finally addressed the HAWK memecoin scandal that shocked the cryptocurrency community back in December 2024. In a podcast episode that was quickly taken down, Welch revealed she was duped into the project, claiming ignorance about the crypto world and being misled by a “friend of a friend.”

• HAWK memecoin launched December 4, 2024
• Reached $500 million market cap before crashing 90%
• Welch unaware of cryptocurrency, misled by “friend of a friend”
• Accusations of insider trading and rug pulling

The HAWK memecoin, launched in collaboration with the Web3 platform overHere, was positioned as a revolutionary force in the crypto space. But the dream quickly turned into a nightmare as the token’s value plummeted from a peak of $500 million market cap (the total value of all tokens in circulation) to almost nothing. On-chain data, which records transactions on the blockchain, showed that a staggering 80% of the token supply was controlled by a small group of wallets, a classic indicator of a rug pull. Pre-sale buyers, sensing the looming disaster, sold off their tokens, worsening the crash.

Welch’s silence on the matter lasted nearly two months, which she described as “a very long nap.” When she finally spoke out, it was on a podcast episode that was swiftly deleted. She claimed she was approached by a “friend of a friend” who pitched the project as a game-changer, despite her complete lack of knowledge about cryptocurrency. Her involvement was limited to a brand image deal, for which she received $125,000 upfront but never saw the promised $200,000 after the launch. She was also supposed to receive a 10% allocation of the token supply with a 1-year lockup, which never materialized.

The situation was further complicated by accusations from fellow influencer FaZe Banks, who didn’t mince words in his critique.

“The price of HAWK is pumping and they completely fucking fumbled the bag, yet again. What a fucking mess. Poor girl, it’s a wonder how she found herself in this position in the first place.”

Banks accused Welch and her team of leaking information and engaging in insider trading, adding more fuel to the controversy. However, Welch’s lawyer, Christian Barker, clarified that her role was purely promotional and she was misled about the project’s true nature.

Following the brief release of the podcast episode, HAWK’s price surged by an astonishing 291%, showcasing the volatile nature of memecoins. But like a balloon losing air, the price quickly fell back to its previous lows. This incident serves as a stark reminder of the risks inherent in the crypto market, especially with memecoins that often lack any real utility or backing.

The total crypto market capitalization was a robust $3.15 trillion at the time of the report, but the HAWK scam highlighted the darker side of the industry. It’s a cautionary tale about the dangers of celebrity-endorsed projects and the critical importance of due diligence. While we celebrate the potential of blockchain technology and the principles of decentralization, freedom, and privacy, we must also confront the scams that threaten to erode trust and progress in the space.

As Bitcoin maximalists might argue, incidents like these underscore the importance of Bitcoin’s foundational principles of security and decentralization. However, we must also recognize that altcoins and other blockchains have their place in the financial revolution, filling niches that Bitcoin might not serve as effectively. The HAWK scam is a sobering reminder that not all that glitters in the crypto world is gold, yet it does not diminish the transformative potential of the broader ecosystem.

Key Takeaways and Questions

• What is a memecoin?

  A memecoin is a type of cryptocurrency inspired by internet memes, often lacking intrinsic value or serious underlying technology but gaining value from hype and community support.

• What is a rug pull in cryptocurrency?

  A rug pull is a type of exit scam where developers abandon a project and run away with investors’ money, typically by selling off a large portion of tokens, causing the price to plummet.

• How did the HAWK memecoin crash affect investors?

  Investors in the HAWK memecoin experienced significant losses as the token’s value crashed by 90% shortly after its launch, leaving many with nearly worthless holdings.

• What was Hailey Welch’s role in the HAWK memecoin project?

  Hailey Welch was involved in a brand image likeness deal to promote the HAWK memecoin, claiming she had no knowledge of cryptocurrency and was misled about the project’s nature.

• What accusations did FaZe Banks make against Hailey Welch and her team?

  FaZe Banks accused Hailey Welch and her team of leaking information about the memecoin and engaging in insider trading, exacerbating the situation’s mishandling.

• How did the HAWK memecoin’s price react to the podcast episode?

  Following the release of the podcast episode, the HAWK memecoin’s price surged by 291% but quickly returned to its previous levels, reflecting the volatile nature of memecoin markets.