Value

Memecoin

Moon

<ul class="wp-block-list">
 <li>HAWK memecoin lost 95% of its value within hours, wiping out $440 million in market capitalization.</li>  
 <li>96% of the token supply was controlled by linked wallets, triggering accusations of fraudulent activity.</li>  
 <li>Investors filed a federal lawsuit, citing Hailey Welch and others' unregistered sales and aggressive promotion.</li> 
</ul>  
<p>Investors in the HAWK memecoin have filed a federal lawsuit after the token’s value fell by over 95% on its launch day, December 4. The lawsuit, filed on December 19, accuses several individuals involved in the creation and promotion of the token fraud and unregistered sales.&nbsp;</p>  
<h2 class="wp-block-heading" id="h-hawk-memecoin-collapse-and-lawsuit-nbsp">HAWK Memecoin Collapse and Lawsuit&nbsp;</h2>  
<p>The HAWK memecoin, associated with internet personality Hailey Welch, launched with a peak market capitalization of $490 million. Within hours, the token’s value crashed by 95%, as noted by Watcher Guru on the X platform.</p>  
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  https://twitter.com/WatcherGuru/status/1869801418112282702
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<p>Further investigations revealed that 96% of the token supply was held by a small group of linked wallets, some of which had started selling tokens immediately after the launch. The collapse of the<a href="https://cryptonewsland.com/best-meme-coins-to-invest-in-december-2024-btfd-coins-presale-captivates-investors-amid-dogecoin-market-shift-and-memecoin-challenges/" target="_blank" rel="noopener noreferrer nofollow"> Solana-based memecoin erased</a> approximately $440 million in value, leaving investors facing significant losses.</p>  
<p>Burwick Law filed the lawsuit in a U.S. federal court on behalf of affected investors. Defendants include Tuah The Moon Foundation, OverHere Ltd, its executive Clinton So, and Alex Larson Schultz, a promoter of the token.&nbsp;</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  https://twitter.com/BurwickLaw/status/1869642524811518243
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<p>While not listed as a defendant, Welch is accused of using her public platform to aggressively promote the token. Lawyers claim that the defendants violated securities laws by selling unregistered tokens to the public.</p>  
<h2 class="wp-block-heading" id="h-allegations-against-welch-and-defense">Allegations Against Welch and Defense</h2>  
<p>Welch, who gained fame as the “Hawk Tuah Girl” earlier this year, allegedly leveraged her celebrity status to attract investors. <a href="https://www.tmz.com/2024/12/19/hawk-tuah-girl-haliey-welch-memecoin-project-sued-after-crash/" target="_blank" rel="noopener noreferrer nofollow">According to the lawsuit</a>, Welch promoted the token extensively through her podcast, social media, and public appearances. Her marketing campaigns reportedly created a speculative frenzy, driving the token’s initial surge in value.</p>  
<p>Welch and her team denied allegations of wrongdoing, stating that the project was not intended as a cash grab. Welch’s manager, Jonnie Forster, emphasized that free tokens were offered to fans engaging with Welch’s content or purchasing merchandise.&nbsp;<br>Welch reportedly holds 10% of the token supply, which she claims she cannot sell for one year due to contractual restrictions. <a href="https://cryptonewsland.com/coinbase-defends-token-delisting-practices-amid-1-billion-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">The case remains ongoing, with the plaintiffs</a> requesting a jury trial to determine damages if their claims succeed.</p>   
<p>The post <a href="https://cryptonewsland.com/hawk-memecoin-lawsuit-investors-react-after-95-value-drop-on-launch-day/" rel="noopener noreferrer nofollow">HAWK Memecoin Lawsuit: Investors React After 95% Value Drop on Launch Day</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

HAWK Memecoin Lawsuit: Investors React After 95% Value Drop on Launch Day

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