In a shocking turning of events, social media sentience Haliey Welch, known as Hawk Tuah Girl, has get hold herself at the mall of a cryptocurrency controversy. The 22 – year – one-time ‘s foray into the world of crypto has ended in disaster, with her stigmatise memecoin, $ HAWK, plummeting in economic value and trip a lawsuit.

The Wage Increase and Fall of $ HAWK

Welch launched the $ HAWK coin on the Solana blockchain on December 5, 2024, leveraging her massive societal media following to push the project. The coin quickly turn over a market capitalization of nearly $ 500 million, only if to crash 95 % to $ 25 million within minutes (1)(2). The damage of the $ HAWK item has since dangle to around $ 0. 00054, leaving many investors reeling.

Case and Allegations

A group of plaintiffs has charge a lawsuit in the United States District Court for the Eastern District of New York, allege that the $ HAWK token was an unregistered security. The suit names overHere Limited, a Hong Kong – ground web3 developer, Clinton So, the company ‘s father, Tuah The Moon Foundation, and Alex Larson Schultz, a Los Angeles resident who elevate the project online (1)(2). The plaintiff claim that they lost around $ 151, 000 and are seeking harm.

Welch ‘s Involvement and Response

Welch has seek to distance herself from the controversy, carry a assertion on X, saying, ” I am fully cooperating with and am institutionalise to attend the legal team stand for the someone impacted, as well as to help uncover the truth, hold the responsible party accountable, and dissolve this affair ” (1)(2). She has also cater a link to the plaintiff ‘s lawyers for those who receive losses.

Implications and Argument

The $ HAWK debacle has raised questions about the role of influencers in cryptocurrency ventures. Critic argue that Welch ‘s liaison in the project was a clear object lesson of a ” heart and dump ” scheme, where insiders keep in line the Price of a souvenir to produce a quick net profit (3). The suit alleges that overHere Limited and its affiliate produce a speculative fury by leverage Welch ‘s social media survey to market the token.

Expert Insights

Billionaire investor Mark Cuban has defended Welch, saying, ” It was n’t something she in full understood. . . But she trusted the people around her ” (2). Nonetheless, crypto insider have betoken out that Welch ‘s squad induce a 10 % allotment of the $ HAWK tokens, which was locked for a year and vested over three yr (2).

Close

The Hawk Tuah Girl crypto fiasco swear out as a cautionary tale about the dangers of influencer – plump for memecoins. As the cryptocurrency grocery store continues to germinate, it is indispensable for investors to be aware of the jeopardy involved in such projects. The lawsuit and allegement besiege $ HAWK highlight the want for greater foil and rule in the crypto space.

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Reservoir :

(1) https://blockchain. bakermckenzie. com/2024/12/30/hawk-tuah-girl-is-trying-to-distance-herself-from-the-collapse-of-her-hawk-memecoin/

(2) https://www. the-independent. com/news/world/americas/hawk-tuah-coin-lawsuit-crypto-b2668157. html

(3) https://fortune. com/crypto/2024/12/10/hawk-tuah-memecoin-launch-haliey-welch-pump-dump-rug-pull/

Keywords : Hawk Tuah Girl, crypto, memecoin, $ HAWK, influencer marketing, cryptocurrency regulation, pump and deck scheme.