TLDR
HAWK token, launched by viral star Hailey Welch, reached $490M market cap before crashing 95%
Bubblemaps found 285 wallets controlled 96% of initial supply through presales and gifts
Project insiders allegedly made $3M from immediate token dumps at launch
Welch and team deny selling tokens, claim high fees were meant to prevent speculation
Legal action may be pending as law firm Burwick Law invites affected investors
On December 4, 2024, the cryptocurrency world witnessed another dramatic token launch and collapse. The HAWK token, created by internet personality Hailey Welch, known as the “Hawk Tuah Girl,” saw its value surge to a market cap of $490 million before plummeting 95% within hours.
The token’s launch on the Solana blockchain attracted immediate attention from crypto investors. Many buyers invested tens of thousands of dollars in the early hours, drawn by Welch’s online popularity and the token’s marketing campaign.
However, within minutes of the public launch, blockchain analysis company Bubblemaps discovered unusual patterns in token distribution. Their investigation revealed that 285 wallets collectively held 96% of HAWK’s supply through presales and gift allocations.
These privileged wallet holders didn’t hold onto their tokens for long. According to Bubblemaps’ data, most of these wallets began selling their holdings almost immediately after the token became available to the public, resulting in profits exceeding $3 million for these early holders.
The rapid sell-off triggered a catastrophic price collapse. Within hours, HAWK’s market cap dropped from $490 million to just $26.4 million, leaving many late investors with heavy losses.
Crypto investigator Coffeezilla joined others in labeling the project a potential scam. Their main criticism focused on the concentration of tokens in a small number of wallets and the coordinated selling that followed the launch.
This “SAFT” claim is insane. Hawk Tuah coin was 100% unlocked on launch. That always will rug if you have people buying in with 0 unlock.
This team presold tokens for millions, and then are crying that they “didn’t sell” and blame it on the “SAFT”. I don’t buy it. https://t.co/FQ6RcF9P0v
— Coffeezilla (@coffeebreak_YT) December 5, 2024
Welch and her team have strongly denied any wrongdoing. In social media posts, they stated that the project team had not sold any tokens. They explained that high transaction fees were implemented at launch specifically to prevent speculative trading.
The team’s defense included claims that no influencers or “Key Opinion Leaders” received free tokens. However, Bubblemaps’ analysis contradicted this statement, showing that strategic advisors and other connected parties had indeed received and sold large amounts of tokens.
1/ We found that 285 investors joined $HAWK presale
• 89 wallets sold 100%
• 47 wallets sold ≥ 50%
• 19 wallets sold < 50%
• 130 wallets sold 0
Total sold: $3.3M
— Bubblemaps (@bubblemaps) December 5, 2024
The community’s response was swift and skeptical. A Community Note on social media tagged the project’s explanations as “intentionally deceptive,” reflecting growing distrust among crypto investors.
Law firm Burwick Law has stepped into the controversy, inviting affected investors to seek legal advice. This development suggests possible legal action against the project’s creators.
Technical analysis of the blockchain data shows the selling pressure came from multiple coordinated sources. The timing and volume of sells indicate careful planning rather than random market activity.
The HAWK token’s trading volume has dropped dramatically since the initial crash. Many early buyers report being unable to sell their tokens due to low liquidity in the market.
Questions remain about the project’s future. While the development team claims to have plans for long-term growth, trading activity suggests most investors have abandoned the token.
Blockchain security firms continue to analyze transaction data from the launch period. Their findings may provide more clarity about the exact nature of the token distribution and subsequent selling patterns.
The most recent development comes from on-chain analysis showing that interconnected wallets managed to extract over $3 million in value during the first hours of trading.
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