Developers of the Hawk Tuah Meme Token Under Investigation for Running Away with Funds
The launch of the meme coin HAWK on December 5, 2024, was met with excitement, but it quickly turned sour as the token plummeted within an hour after its debut. The coin, backed by meme star Hawk Tuah and influencer Haley Welch, saw its price plummet from $0.049 per token to $0.006, stabilizing around $0.003.
Since then, accusations of a rug pull scam have been levied against the project team. Some users claim that the team orchestrated the collapse, selling their tokens and causing the price to plummet. However, the project team, including the OverHere team and Haley Welch's team, have denied selling any tokens.
According to analysts from Bubblemaps, the distribution of 1 billion HAWK tokens after minting was as follows: 3% was allocated to the Meteora marketplace, 17% was reserved for early investors under "strategic allocation", and 80% was set aside for community rewards and team reserves. Analysts also confirmed that the HAWK team did not sell their tokens, but influencers and strategic advisors dumped large quantities of tokens onto the market.
The distribution of the 17% allocated to early investors was spread across 285 wallets, according to Bubblemaps. Early investors collectively made approximately $3.3 million from selling the tokens. Within the first hour after the launch, the largest quantities of tokens were sold by 13 wallets that coordinated to buy large amounts quickly and then sell at peak prices, collectively earning over $24.5 million. This group was identified in connection with the YZY token launch on Solana, which had a similar explosive market behavior.
Alleged screenshots of insider wallets selling millions of HAWK tokens have been shared by some users. A community note also alleges that the team and insiders have been selling their tokens since the launch.
The SEC has not yet taken any public action against the HAWK project for alleged rug pulling. One commenter believes that SEC regulations penalize rug pulls, and if the amount is large enough, there could be jail time. However, it remains to be seen whether the SEC will take any action against the HAWK project.
As of this writing, the price of HAWK stands at $0.0028, having plummeted from its peak of $0.049 per token. The controversy surrounding the project continues, with users calling for transparency and accountability from the team. The future of the HAWK project remains uncertain, but the incident serves as a reminder of the risks associated with investing in cryptocurrencies.
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