Haliey Welch, the 22-year-old who rose to viral fame earlier this year with her “hawk tuah” TikTok video, is now at the center of controversy following the disastrous launch of her cryptocurrency, $HAWK. Known for her social media presence, Welch ventured into the cryptocurrency world by creating a “meme coin,” similar to popular coins like Dogecoin, which are often created for entertainment purposes or to capitalize on social media trends. While these types of cryptocurrencies can be fun, they are also highly volatile and prone to sharp market fluctuations.

The $HAWK coin was launched on the Solana blockchain platform, and initially, it garnered significant attention. However, shortly after the launch, its value plummeted dramatically. What started as a market capitalization of nearly $500 million quickly dropped by 95%, leaving the coin worth just $25 million. This steep decline caused substantial losses for many investors. Critics are now raising concerns that the launch could have been a “rug pull”—a scheme where developers artificially inflate the value of a cryptocurrency before cashing out, leaving investors with devalued assets.

Following the coin’s collapse, several investors filed complaints with the U.S. Securities and Exchange Commission (SEC), which regulates financial markets, including cryptocurrencies. The complaints suggest that Welch’s project may have involved illegal practices such as insider trading or market manipulation, potentially prompting an SEC investigation. The SEC is responsible for ensuring fairness and transparency in the market, and these allegations could lead to serious regulatory scrutiny.

Despite the growing backlash, Welch and her team have denied any wrongdoing. They claim they did not sell any tokens during the launch and took steps to prevent “snipers”—investors who buy up large quantities of a coin early on and sell them for quick profits—from manipulating the market. Welch addressed the controversy on social media, asserting that the failure of the coin was purely due to unforeseen circumstances and was never intended to deceive investors.

Welch first gained attention in the summer when a viral TikTok video, in which she made a sexual joke at the CMA Fest in Nashville, was widely shared. Since then, she has transitioned from being an internet personality to a celebrity, influencer, and entrepreneur. She assembled a professional team that includes an attorney, a PR firm, and a management company, and even launched her own business, 16 Minutes. Welch also started a podcast, Talk Tuah, and has made public appearances, including performing on stage with country music artist Zach Bryan in Nashville and hanging out with NBA legend Shaquille O’Neal.

However, the launch of $HAWK has been a significant setback in her entrepreneurial journey. Initially intended as a fun, meme-driven cryptocurrency, the project quickly turned into a financial disaster, drawing widespread criticism. Some investors and crypto influencers have accused Welch and her team of insider trading, an accusation they have firmly denied. One prominent critic, Stephen Findeisen, a well-known crypto YouTuber known as Coffeezilla, described the launch as “one of the most miserable, horrible launches I’ve ever seen.” He also accused Welch’s team of manipulating the rollout for profit, but they have rejected these allegations.

The controversy has also attracted the attention of law firms specializing in cryptocurrency, some of which are offering their services to investors who suffered losses due to the coin’s rapid decline. Despite the negative press, Welch and her team continue to defend the project, insisting that it was never meant to be a scam. They emphasize that their goal was simply to create an entertaining and engaging cryptocurrency for their audience, not to defraud investors. However, the financial losses and growing scrutiny have raised important questions about the risks of meme coins and the responsibilities of creators when launching such volatile assets.

While the $HAWK launch may not have gone as planned, the situation highlights the unpredictable nature of the cryptocurrency market and the need for greater regulation and transparency in the industry. For Welch, this experience could serve as a cautionary lesson about the challenges and risks involved in the rapidly evolving world of digital assets.