Newly launched memecoin HAWK crashes from nearly $500M to $60M market cap in 20 mins

Hailey Welch, an influencer on social media, launched her own memecoin, Hawk Tuah, on Dec. 4. The cryptocurrency crashed from $500 million to $60 million in just 20 minutes post-launch.

Hailey Welch, commonly known as the Hawk Tuah Girl on the internet, launched her new memecoin of the same name, $HAWK, on Solana on Dec. 4. The coin quickly took off, garnering a market cap of about $500 million, which then crashed to nearly $60 million, all within 20 minutes of launch. The news was further confirmed by Solana (SOL) on X.

Solana’s X post on the Hawk tuah or HAWK token plummeting down.

Who is Hawk tuah girl?

Welch first rose to fame as the “Hawk tuah girl” after a video of her went viral, making a comical onomatopoeic sound of spitting took over social media earlier this year. With the meme, Welch soon progressed from working a minimum wage job to finding herself in an internet meme culture. Building on this viral moment, Welch launched the HAWK token.

Rise and fall of HAWK token

The massive drop of almost 88% in the HAWK token has reignited the discussion on the high volatility of memecoins in the cryptocurrency community. Some crypto users believe the token was initially built for rug pulling, a cryptocurrency scam in which developers withdraw liquidity or suddenly abandon a project, resulting in the token’s price plummeting.

Community-generated content visible on X warning about the HAWK token.

According to content generated by the community on X, the Hawk token’s supply was allegedly “sniped” shortly after launch. This refers to instances where early investors or bots snatch up large amounts of tokens, leaving the broader community with less access and exposing them to risks. These are often warning signs of the health of the project as it shows few people own the token. However, not all holders have sold their HAWKs, as posted by a user, ZeusLFG, reflecting a strong optimism for the token.

At the time of writing, the token’s trading volume has risen exponentially by 951.67%, as per CoinMarketCap. While the debate goes on, Hawk Token remains under close observation, with members of the community demanding additional disclosures to confirm these claims and keep a close eye on this project.