(NewsNation) — A woman known as the “Hawk Tuah Girl” is now facing accusations that her cryptocurrency, which launched Wednesday, was part of a pump and dump scam.
Hailey Welch went viral after a social media video containing sex advice and boosting her to internet fame. Welch quit her job at a spring factory after the video took off and launched a podcast and made endorsement deals off her viral image.
Welch has also become involved in the world of cryptocurrency, including Bitcoin. That led to the launch of her own cryptocurrency, a meme coin based on her own viral success.
$Hawk launched on the blockchain platform Solana with promises it complied with security laws. The coin exploded by 900% during initial trading, with market capitalization nearing half a billion dollars. But then the price collapsed by roughly 95%, wiping out retail investors within hours.
That has led to allegations that $HAWK was a scam known as a pump-and-dump scheme or rug pull, where developers promote a crypto project to raise money before liquidating their assets and walking away.
Critics have alleged there is evidence of insiders on the project getting rid of their investments for large amounts and buyers known as snipers, who come in and buy up the bulk of available coins they then sell for instant profit.
The publication Cointelegraph found one crypto wallet was able to get 17.5% of the supply of $HAWK and then flip it in 90 minutes, earning $1.3 million.
Blockchain data analyst Bubblemaps also found 96% of $HAWK was concentrated in one cluster of related wallets, something that suggests a degree of coordination around transfers.
Investors began filing complaints with the Securities and Exchange Commission following the launch. It isn’t clear what penalties Welch or others behind the $HAWK coin could face.