Summary:
Hawk Tuah coin crashed 95%, causing significant trader losses.
Haliey Welch launched the coin on the Solana blockchain.
Coin's market cap peaked at $500 million before falling to $25 million.
Accusations of insider trading have emerged against Welch's team.
Criticism from crypto influencer Coffeezilla highlights launch issues.
The Hawk Tuah Coin Disaster
Haliey Welch, known for her viral TikTok fame, launched her own meme coin called Hawk Tuah on the Solana blockchain. Initially, the coin skyrocketed to a staggering market capitalization of nearly $500 million, but it plummeted 95% shortly after, leaving many traders facing significant losses.
Insider Trading Allegations
The drastic decline in value led to accusations of insider trading against Welch and her team. Stephen Findeisen, also known as Coffeezilla, criticized the launch during a conversation on X, calling it “one of the most miserable, horrible launches I’ve ever seen.” He claimed that 80 to 90 percent of the Hawk Tuah supply was controlled by insiders or snipers, individuals who buy large amounts of a coin at launch.
Despite these accusations, Welch's team has denied any wrongdoing, stating they had not sold any tokens and attempted to mitigate sniper activities.
The Meme Coin Phenomenon
Meme coins like Hawk Tuah are cryptocurrencies that leverage popular social media trends to gain traction. However, the volatility and risks associated with such coins can lead to rapid gains and equally swift losses, as seen in this case.
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