Hailey Welch, known for her internet-famous catch-phrase “Hawk Tuah,” launched a Solana-based memecoin on December 4, 2024. Critics of the launch claim those associated with the project defrauded innocent investors; though project insiders deny such claims. What is uncontested is that shortly after public launch the price of the memecoin skyrocketed, a small portion of owners sold off their tokens, and the token’s value neared 0 as of December 13, 2024.
With full coverage and tracing on the Solana blockchain, TRM Labs was able to trace out the launch and subsequent transactions in real time.
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Hailey Welch Becomes Famous
Haliey Welch, widely known as the "Hawk Tuah" girl, rose to prominence in the summer of 2024 through a viral TikTok video. Her off-color catchphrase and distinctive Southern charm quickly turned her into a viral internet sensation. Building on her newfound fame, Welch expanded her brand by launching a merchandise line and hosting a podcast that featured high-profile guests, including Mark Cuban. On December 4, 2024, Welch took her branding a step further by entering the cryptocurrency space with the launch of her memecoin, $HAWK, on the Solana blockchain.
Welch’s decision to create a memecoin aligned with her internet persona and the broader trends within the cryptocurrency world. Memecoins are a unique category of digital currency that thrive on internet culture, memes, and social trends. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are built on technological innovations or specific utilities, memecoins derive their value primarily from community engagement and viral appeal. Popularized on platforms like Twitter, Reddit, and Telegram, these tokens are often speculative in nature, with their market performance driven by hype rather than inherent functionality.
Prominent examples of memecoins include Dogecoin (DOGE), which began as a joke but became one of the most widely recognized cryptocurrencies, and Shiba Inu (SHIB), often referred to as the "Dogecoin killer," which reached a multi-billion-dollar market cap at its peak. Others, such as Pepe (PEPE), based on the internet meme Pepe the Frog, and Floki Inu (FLOKI), inspired by Elon Musk’s dog, gained significant attention for their community-driven growth. These tokens demonstrate the speculative and volatile nature of memecoins, which $HAWK would soon come to embody.
The Development and Launch of $HAWK
On November 26, 2024, Welch announced the upcoming launch of $HAWK in collaboration with overHere, a Web3 launchpad platform. The project was introduced with an allowlist campaign that allowed fans to register for free tokens, particularly those who had purchased her merchandise.
In an interview with Fortune prior to the launch, Welch insisted that her memecoin, named HAWK, is “not just a cash grab,” but offered few details about how it could be used for more than speculation. Welch explained she wants to change the public’s view on crypto, though her manager, Jonnie Forster, interceded when asked about HAWK’s valuation and legal uncertainty. “We don’t want to break securities laws,” Forster told Fortune. “We would say that we’re almost, like, tokenizing, in a sense, Haliey’s fan base.” Forster described the coin as an effort to "tokenize" Welch’s fanbase, turning her online community into an engaged digital ecosystem. Welch herself retained 10% of the total token supply and committed not to sell her holdings for at least a year.
Tracing and Tracking the $HAWK Coin Launch
The $HAWK token officially launched on December 4, 2024, at 5:00 PM EST. Welch went to X to announce that the project was live:
Initial enthusiasm saw the token’s market capitalization skyrocket to USD 490 million. However, within hours, the value plummeted by 91%, reducing the market cap to USD 41.7 million. This sudden drop mirrored the trajectory of many other memecoins, which often experience a hype-driven surge followed by rapid declines.
Market Activity and Insider Allegations
Blockchain analysis reveals that a small number of wallets controlled a disproportionate share of $HAWK tokens.
One of the project’s controlled addresses, using a vanity address beginning “HAWK,” appears to have funded the “strategic investors” who were subsequently able to immediately sell their tokens while at peak value.
One wallet, according to TRM, acquired 17.5% of the total supply seconds after launch and sold these tokens rapidly in the freemarket. These actions led to allegations of insider trading and market manipulation. Critics labeled $HAWK a potential pump-and-dump scheme, a tactic where a token’s value is artificially inflated before large-scale sell-offs.
Critical to understanding this activity is blockchain coverage on Solana. TRM has the most exhaustive Solana coverage and tracing capabilities; necessary for identifying illicit transactions and other risk indicators such as sanctions coverage or fraudulent crypto offerings.
Welch’s Vision and Statements
In response to the controversy, Welch emphasized that $HAWK was not designed as an investment vehicle but as a way to engage with her fanbase. She highlighted efforts to prevent exploitative practices, such as "sniping," where investors rapidly acquire tokens at launch to manipulate the market. Welch cited her growing interest in cryptocurrency, developed through her attendance at blockchain events in Tennessee and Korea, and described $HAWK as a new way to interact with her followers.
Forster reiterated that $HAWK was structured to comply with securities laws, with tokens distributed for free to eligible fans rather than sold directly. However, the rapid price drop and concentrated ownership raised questions about the project’s execution and transparency.
Broader Market Context and Regulatory Implications
The launch of $HAWK occurred during a period of significant volatility in the cryptocurrency market. Key cryptocurrencies were experiencing fluctuations:
- Bitcoin (BTC): $97,149 (-1.00%)
- Ethereum (ETH): $3,622.05 (-6.01%)
- Solana (SOL): $213.27 (-5.81%)
- Dogecoin (DOGE): $0.39 (-10.95%)
These conditions underscored the challenges facing speculative tokens like $HAWK. Following the coin’s steep decline, law firms began investigating potential class-action lawsuits, citing allegations of insider trading and lack of transparency.
Ms. Welch has uncharacteristically not posted on social media since the launch on December 4, 2024.
This is not the first time a celebrity has been caught up in a memecoin scandal. Lindsay Lohan, Jake Paul, Soulja Boy and others were charged by the SEC for illegally promoting Tronix and BitTorrent. The SEC separately charged rapper TI and his associates for insider trading and misleading promotion of the crypto project FLiK, and both Caitlyn Jenner and Shaquille O’Neil face federal lawsuits for their promotions of crypto-based projects.
Conclusion
The launch of $HAWK reflects the intersection of internet fame and the speculative world of memecoins. Welch’s attempt to tokenize her fanbase followed a pattern seen with other memecoins, where rapid hype can result in significant volatility. While $HAWK’s future remains uncertain, its debut highlights both the opportunities and risks inherent in the growing crypto ecosystem.
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