Hawk Tuah Coin Creators Face Legal Battles: What to Know
The arguments and counter-arguments surrounding Hailey Welch and the Hawk Tuah meme coin have led to a court battle between the coin’s creators and investors.
Hailey Welch’s Hawk Tuah Coin Promotion
Hailey Welch, a popular crypto influencer known as the “Hawk Tuah Girl,” has fallen silent amid controversy surrounding a cryptocurrency she promoted recently. Her absence from the public eye has led to speculations and frequent Google searches about her whereabouts.
Welch, known for promoting the Hawk Tuah meme coin, became the face of a promising venture that eventually crumbled, leaving investors enraged. Though there is no evidence to prove she is not alive, her reputation and the Hawk Tuah project have collapsed.
A series of marketing campaigns powered Welch’s rise to fame in the crypto world. Using her social media status and promises of financial freedom, she lured many followers to invest in this cryptocurrency.
The launch of the Hawk Tuah coin was touted as lofty but quickly became a nightmare when its value plunged into free fall, and investors lost their funds. Moreover, Welch vanished from the spotlight by deleting her social media accounts and severing ties with the Hawk Tuah community.
Legal Chaos Surrounds Hawk Tuah
According to Bloomberg Law, lawsuits have been filed against Welch’s promotional partners and entities involved in launching the coin. The plaintiffs argue that Hawk Tuah was marketed as an unregistered security, with its promoters aware of the project’s doomed trajectory.
Defendants are the Tuah The Moon Foundation, OverHere Ltd, and its founder, Clinton So, along with influencer Alex Larson Schultz, alias Doc Hollywood, on social media. The lawsuits claimed that the defendants took advantage of the coin’s hype during pre-sale and early trades to make huge profits while intentionally leaving investors with worthless coins.
On-chain investigations indicated that the coins’ supply was highly concentrated in a few wallets linked to insiders. However, Welch was not directly targeted in the lawsuits, even though she was marketing the coin to millions of followers.
A Lesson in Overhyped Promises
On its launch day, Hawk Tuah reached a market capitalization of $491 million, only to crash by 95% a few hours later. This rapid decline wiped out millions in value and left investors grappling with significant losses.
The court filings added that the project’s structuring was designed to circumvent US securities laws by stating that Tuah The Moon Foundation is an offshore entity. However, the promotional effort directly and very frequently targeted US investors, whom those securities laws are designed to protect.
The cryptocurrency’s implosion has led to regulatory interest, increasing the legal jeopardy for Haily Welch and her co-creators.
Hawk Tuah Crypto Scandal and Celebrity-Backed Meme Coins
The Hawk Tuah scandal follows the recent trend of volatile activity from meme coins. According to on-chain data, total market capitalization for meme coins has fallen dramatically, with the prices of tokens such as Brett, Peanut the Squirrel, and Popcat also dropping significantly.
The collapse of the Hawk Tuah token demonstrates the inherent risks associated with speculative asset investment. Many of its investors were new to cryptocurrency and were lured by Welch’s charisma and marketing prowess.
The crypto project’s whitepaper allowed only a fraction of the token’s total supply to be in circulation, while the majority was in the hands of a few insiders. This lack of decentralization further fuels suspicions of market manipulation and insider trading.
Will Meme Coins Rally Again?
Historical trends show Bitcoin and altcoins do relatively well in the first quarter of every year, creating hope for meme coin investors. However, recovery, especially by meme coins, would need more than favorable market trends.
Many meme-themed crypto projects would need to regain the trust of potential investors. Despite the controversies, the Hawk Tuah token is up nearly 16% in the last 24 hours, according to CoinMarketCap data.
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