Haliey Welch, widely recognized as the viral “Hawk Tuah Girl,” is under fire after the disastrous launch of her memecoin, $HAWK. The cryptocurrency, touted as a fun and interactive venture for her fans, collapsed by more than 90% just hours after its debut, drawing allegations of a “pump and dump” scheme and sparking backlash from investors.

A Promising Start Turns into a Sharp Decline

Welch launched $HAWK on the Solana blockchain on Wednesday evening (December 4), initially pricing the token at $0.005492. The memecoin saw an extraordinary surge of over 900%, peaking at a market cap of $490 million. However, the euphoria was short-lived. Within hours, $HAWK’s value plunged by a staggering 91%, leaving the token’s market cap at just $60 million.

The rapid collapse has been attributed to insider wallets and snipers—entities that acquire large portions of a token’s supply at launch. Reports indicate that one wallet controlled 17.5% of $HAWK’s supply, purchasing $993,000 worth of tokens and flipping them for a $1.3 million profit in less than two hours.

Allegations of ‘Pump and Dump’

Critics accuse Welch and her team of orchestrating a “pump and dump” scheme, a tactic where insiders artificially inflate a token’s value and then sell off their holdings at its peak, leaving regular investors to bear the losses. Welch has firmly denied these allegations, addressing them in a post on X/Twitter:

“My team hasn’t sold one token, and not 1 KOL [key opinion leader] was given 1 free token. We tried to stop snipers as best we could through high fees at the start of launch on @MeteoraAG. Fees have now been dropped.”

Welch’s manager, Jonnie Forster, told Fortune prior to the launch that Welch would own 10% of the $HAWK supply but would be unable to sell any of it for one year. Welch herself described the project as a “fun way to get my fans to interact” and denied any intention of exploiting her followers.

Regulatory and Community Fallout

At least one investor has filed a complaint with the U.S. Securities and Exchange Commission (SEC), adding to the scrutiny surrounding Welch’s project. The controversy has also ignited debates on social media, with many users mocking the incident.

One X/Twitter user quipped, “She’s gonna have to Talk Tuah judge soon,” while another remarked, “She just hawk tuahed $1M dollars from our pockets.”

From Viral Fame to Crypto Controversy

Welch rose to prominence in June as the “Hawk Tuah Girl,” following a viral NSFW interview with YouTubers Tim Dickerson and DeArius Marlow. Leveraging her newfound fame, Welch has since signed with an agent and launched a podcast titled Talk Tuah.

Despite her insistence that $HAWK was not a “cash grab,” the project’s disastrous launch has put Welch’s reputation and credibility on the line. The incident serves as a cautionary tale about the risks of influencer-backed cryptocurrencies, particularly those with limited utility and questionable safeguards against market manipulation.

Lessons for Investors

The $HAWK debacle highlights the volatility and risks associated with memecoins and influencer-led crypto projects. While Welch continues to defend her intentions, the controversy underscores the importance of thorough due diligence and skepticism in an era where viral fame often intersects with speculative investments.

As Welch faces mounting backlash and regulatory scrutiny, the future of $HAWK—and her credibility in the crypto space—remains uncertain.