Outside Source
A memecoin bearing Hailey Welch’s likeness rose to a market capitalization of roughly $500 million after its launch on Dec. 4 before dropping by 90%.
News
Hailey Welch, the influencer behind the viral ‘Hawk Tuah’ TikTok video, has released a statement after a memecoin bearing her handle pumped and dumped quickly after its December launch.
In a Dec. 20 X post, Welch said she was “fully cooperating” with lawyers who represented investors in the Hawk Tuah (HAWK) token.
The crypto users filed a lawsuit against the project’s creators and partners — Welch herself was not named as a defendant in the suit — alleging they engaged in the promotion and sale of an unregistered securities offering.
A statement posted to X on Dec. 20. Source: Hailey Welch
On Dec. 4, the HAWK token launched, rising to a market capitalization of roughly $500 million before quickly dropping by 90%, prompting many users to speculate there had been a rug pull. Welch called on anyone affected to contact lawyers, adding she took the situation “extremely seriously.”
From TikTok stardom to memecoin promoter?
Welch, who rose to internet fame after a June clip of her describing a sexual act went viral on TikTok, has parlayed the incident into her Hawk Tuah nickname and brand. Her likeness was used on the HAWK token, and she promoted the memecoin on social media.
Related: Coffeezilla calls out ‘insane headlines’ about Hawk Tuah memecoin
According to blockchain data, one wallet sniped HAWK tokens shortly after the project launched, purchasing roughly 18% of the memecoin supply and then selling it for more than $1 million in profit. Many of the memecoin’s investors, however, reported massive losses after the price pumped and dumped.
It’s unclear whether Welch or the project’s founders could face criminal or regulatory lawsuits in the United States as a result of the memecoin launch. Under Securities and Exchange Commission (SEC) Chair Gary Gensler, the regulator has treated the majority of tokens as securities under its purview. However, the SEC is set to change hands to Republican control beginning in January.
Magazine: Influencers shilling memecoin scams face severe legal consequences
This article first appeared at Cointelegraph.com News
