From Fame To Fallout: ‘Hawk Tuah Girl’ Faces Legal Heat After 90% Coin Plunge

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As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed the rise and fall of countless digital assets. The recent legal battle surrounding the “Hawk Tuah Girl” meme coin, or $HAWK, is a fascinating case that sheds light on the complexities of the cryptocurrency market and its regulations.

Originally exploding in popularity as a viral phenomenon, “Hawk Tuah Girl” has since sparked intense anticipation, transforming into a meme-based cryptocurrency. However, it’s currently involved in a heated court case.

Developers of the digital assets inspired by viral internet memes are currently embroiled in a court case, which has been officially initiated at the U.S. District Court for the Eastern District of New York.

The “Hawk” token finds itself at the heart of the legal turmoil following a swift increase in value upon its release, momentarily reaching a market capitalization of $490 million on Wednesday, only to plummet by 91%, currently sitting at a revised market cap of $41.7 million.

Approximately thirteen individuals promptly submitted a grievance, listing Alex Larson Schulz, Overhere Limited, Clinton So, and the Tuah The Moon Foundation among the accused parties.

$HAWK Started Strong, Then Crashes By 91%

Investors of the Hawk Tuah meme coin have lodged a grievance, alleging breaches of current federal securities regulations.

Haliey Welch, the Tennessee woman whose popularity skyrocketed online, sparked the creation of a meme-based cryptocurrency but was excluded from the related lawsuit. Welch’s captivating viral video garnered significant attention and amassed millions of followers across social media platforms.

Through her rising fame, she started creating podcasts, bringing on board several prominent figures such as Wiz Khalifa and Mark Cuban as guests.

The noteworthy accomplishment of Welch lies in the foundation of a digital currency called HAWK Coin, which made its market debut on December 4th, boasting an initial market value of approximately $16.69 million.

Following its release, the value of the meme token exceeded a market capitalization of $490 million. Yet, this growth proved short-lived, as it tumbled by an astonishing 91%, reducing its market worth to a mere $41.7 million the following day.

Hawk Tuah: Following The Meme Coin Template

In the realm of digital currencies, meme coins have gained significant popularity. These unique coins are characterized by their association with trending online content, humorous internet references, and active user involvement.

A significant factor contributing to the widespread appeal of meme coins lies in their user-friendly nature, allowing everyday traders and novice investors an opportunity to engage with and contribute to the community.

Based on various accounts, it appears that a significant number of HAWK’s investors were newcomers to the cryptocurrency world, drawn in by Welch’s widespread fame. The legal action highlighted that the significant drop in the token’s market worth led to financial losses for these investors.

A lawsuit brought before a New York court alleges instances of insider trading, as well as accusations that certain developers intentionally withdrew from the project following the increase in the token’s value which they had initially raised.

‘Hawk’ Token An Unregistered Security?

In their argument, they contended that the token exhibited traits consistent with an unregistered financial instrument, as determined by past court rulings and precedents.

It was mentioned that the team behind the project capitalized on Welch’s fame and active social media presence for promoting their token and establishing distinctive branding.

As a researcher, I’ve observed that the early triumph of this token is largely attributed to the exceptional entrepreneurship skills of Welch, with minimal involvement from investors at the outset.

Currently, some financial analysts are expressing concerns that the fall of $HAWK and accusations of insider trading could potentially weaken both existing and upcoming cryptocurrency ventures.

George Georgiades from Borderless Innovations Lab Inc. points out that meme coins present unique challenges that haven’t been tackled by the Securities and Exchange Commission previously.

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2024-12-21 10:42