An emerging digital asset named after internet sensation “Hawk Tuah Girl” Hailey Welch has recently faced legal challenges. Following its rapid decline in value post-launch, investors have taken action against key figures and entities associated with the coin. Within mere hours, the $HAWK meme coin’s market valuation plummeted from a peak of $490 million to just $41.7 million, prompting a lawsuit from its disgruntled investors.
The lawsuit targets Tuah The Moon Foundation, overHere Ltd, founder Clinton So, and influencer Alex Larson Schulz, also known as “Doc Hollywood.” Allegations claim these parties engaged in the illegal sale and promotion of $HAWK coin, which was purportedly not registered as a security. Hailey Welch, though not named in the lawsuit, has taken to social media to express her commitment to assisting those impacted.
What is Hailey Welch’s Response?
Hailey Welch addressed the situation on her social media platform, stating her commitment to aiding the affected parties.
“I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter,”
Welch shared, directing those who suffered losses to contact the Burwick Law firm for further assistance.
How Did $HAWK Coin Perform?
Launched on December 5, the $HAWK meme coin reached a market cap of $490 million shortly after its release. However, it quickly dropped to just $41.7 million, raising concerns among investors. Welch, who promoted the coin on her social media, emphasized to Fortune that the project was not intended as a “cash grab” and represented a unique way for fans to engage with her.
In earlier reports, the meteoric rise of meme coins has been met with varying degrees of skepticism and optimism. While some coins have seen sustained success, many experience similar volatile trajectories as $HAWK. This particular incident underscores the uncertainties inherent in the cryptocurrency market, especially with assets that heavily rely on social media influence for momentum.
Hailey Welch, a 22-year-old who gained celebrity status overnight, initially viewed cryptocurrency with skepticism. However, her perspective evolved as she recognized it as an interactive way to engage her fan base.
“It’s a fun way to get my fans to interact,”
Welch commented, acknowledging the evolving nature of digital currencies.
The sudden legal actions following the coin’s collapse highlight the risks involved in investing in meme-based digital assets. The case brings attention to the need for regulatory clarity in cryptocurrency offerings, particularly those that leverage influencer marketing. As the situation unfolds, it serves as a reminder of the potential pitfalls in the rapidly evolving crypto landscape.
