Influencer Hailey Welch, known for her viral “hawk tuah” moment, faced controversy after the cryptocurrency “HAWK,” which she helped launch, saw a significant drop in price. Accusations of a potential scam arose, with concerns of rug pulling – a tactic where creators hype up a coin’s value only to sell their holdings, leaving investors with devalued tokens. YouTuber Coffeezilla confronted Welch about these allegations in a live conversation, where Welch denied selling any of her holdings and blamed bots for the market cap fluctuation.
Welch, who went from social media sensation to launching her own cryptocurrency, promoted HAWK across various platforms. Despite initially thinking of crypto as a scam, Welch began to see it as a way to interact with fans after attending conferences. The launch of HAWK on the Solana blockchain saw a sharp price drop shortly after, causing criticism from traders and investors who had purchased the coin.
Memecoins like HAWK, inspired by internet memes, have seen both success and controversy in the market. Some, like DOGE and MOODENG, have gained popularity due to social media hype, while others, such as SQUID, have faced accusations of rug pulling and scams. Celebrities promoting these coins without transparency about their financial interests have also come under scrutiny. As the crypto industry experiences a resurgence, concerns about potential scams and unethical practices continue to be raised, prompting a closer look at the regulation and transparency within the market.
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