How Hailey Welch’s $HAWK Token Became a $500M Disaster

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— 5 min read
How Hailey Welch’s $HAWK Token Became a $500M Disaster

The launch of the Hailey Welch-backed $HAWK memecoin was one of crypto’s most dramatic stories in 2024. 

Within hours, the token soared to a $500 million market cap before collapsing by 95%, erasing millions of dollars. 

Welch, a viral internet personality famous for her “hawk tuah” catchphrase, leveraged her massive online following and collaborations with influencers to promote the token.

But behind the hype, $HAWK’s launch revealed troubling tokenomics, insider sell-offs, and centralized control that left retail investors holding the bag. Let’s break down what went wrong.

Hailey Welch’s Viral Rise to Fame

Hailey Welch became an internet celebrity through a simple TikTok video. 

In the short clip, she mimicked a spitting sound while saying the phrase “hawk tuah.” The quirky and absurd moment struck a chord with millions, turning Welch into a global meme overnight.

Rather than letting her fame fade, Welch capitalized on the opportunity to build an empire:

  • Podcast Success: Welch launched The Talk Tuah Podcast, which quickly became the 5th most popular globally, amassing millions of weekly listeners.
  • Merchandising Wins: Her “Hawk Tuah” merchandise and signature sound packs regularly sold out, earning hundreds of thousands in revenue.
  • Celebrity Appearances: Welch became a high-demand influencer, commanding $30,000 per event appearance.
  • Endorsements: She even collaborated with other influencers like Jake Paul and Mark Cuban.

Her savvy business moves turned her into more than a meme. Welch became a brand. 

Her next venture: launching a memecoin, a natural choice for most internet celebrities.

Why $HAWK Sounded Too Good to Be True

When Hailey Welch announced the $HAWK memecoin, it was marketed as a “community-first” project with its own ‘Hawkanomics’.

Within hours of launch, $HAWK reached a $500 million market cap. — a staggering milestone that attracted fans, retail investors, and crypto speculators.

The project promised decentralization and inclusivity. Welch presented it as a way for her fans to join in her success. 

But as it happens with most celebrity memecoin projects —  the stage was set for a major sell-off.

$500M to $25M —  The 95% Crash Everyone Saw Coming

The $HAWK token’s meteoric rise came to an equally dramatic end. Within hours of reaching its peak market cap, the token plummeted by over 95%, leaving investors devastated.

What caused the collapse?

  • Bubblemaps revealed that 96% of the token supply was controlled by a tightly connected cluster of wallets. This level of centralization enabled insiders to manipulate the market and coordinate sell-offs.
  • The 17% token allocation, unlocked at launch, allowed early backers to sell $3.3 million worth of tokens immediately. This created overwhelming sell pressure and set off a chain reaction.
  • If we look closely, of the 285 wallets participating in the presale:
    - 89 wallets sold 100% of their tokens immediately.
    - 47 wallets sold more than half their holdings.
    - 19 wallets sold less than half their holdings.
    - Only 130 wallets retained any tokens post-launch.
  • On top of these things, a 15% trading fee, marketed as a deterrent against snipers, generated over $2 million in revenue for the team within 24 hours.

While many memecoin projects faded into obscurity after similar failures, $HAWK faced widespread scrutiny. Hours after the crash, investigative content creator Coffeezilla uncovered even more crucial details on his Youtube channel.

  • The $HAWK pitch deck explicitly targeted Welch’s fanbase — many of whom were new to crypto — calling them “normies” who were unlikely to scrutinize the tokenomics.
  • While Welch insisted her team’s tokens were locked, on-chain data showed wallets linked to the team participating in the sell-off.

Following the crash, fans and investors took to social media, sharing their losses and demanding accountability. 

Many felt betrayed by Welch, whom they trusted based on her prior success and community engagement.

As backlash mounted, Welch’s team hosted a Twitter Space to address concerns. The event, however, did more harm than good:

  • Key project figures called critics “mentally ill” and dismissed concerns as “baseless whining.”
  • When Coffeezilla pressed about the $2 million in fees and insider profits, the team deflected, citing vague “operational expenses” like Cayman Island corporations and legal fees.
  • Surprising enough, Welch exited the discussion mid-way abruptly.

Lessons Learned and What Investors Should Watch For

The $HAWK collapse is a textbook example of why celebrity-backed memecoins often fail. 

These projects typically lean on hype and fame rather than solid fundamentals and community, leaving investors vulnerable when things go south.

Red flags like token control, aggressive unlock schedules, and unclear fee structures are common. 

Most celebrities abandon these projects once the hype dies down, leaving retail holding the bag.

Key Red Flags to Watch Out For

  1. Projects with token distribution concentrated in a few wallets give insiders too much power to manipulate the market.
  2. Immediate liquidity, as seen in $HAWK’s Strategic Allocation, benefits insiders at the expense of long-term stability. 
  3. High fees marketed as “anti-sniping” often generate revenue for the team rather than benefiting the community. Scrutinize the purpose and beneficiaries of trading fees.
  4. Fame doesn’t equal trustworthiness. Projects that rely heavily on celebrity promotion often lack substance or long-term commitment.
  5. Tokenomics should align with the project’s vision. Lack of clarity or overly optimistic promises are signs of potential trouble.

Here’s How to Get Started with Bubblemaps

  1. Visit Bubblemaps.io: Log in with a Web3 wallet or explore without logging in for a quick overview. (Log in with an email address if you're using V2)
  2. Search for a Token: Use the search bar to find any token by name, address, or symbol.
  3. Select the Blockchain: Choose the correct blockchain network (e.g., Ethereum, Base, etc.) to get accurate token mapping.
  4. Analyze Wallets: View the map of wallet clusters, and click on individual bubbles for wallet details and transaction histories.
  5. Detect Patterns: Use filters to identify token clustering, concentration, and flow.
  6. Bubblemaps highlights wallet connections and potential patterns, providing insights into token distribution and possible manipulation risks.

By avoiding celebrity-backed projects and using tools like Bubblemaps, you can steer clear of common pitfalls and focus on crypto investments that prioritize transparency and sustainability. 

Remember, the data always tells the real story — dig deeper before you commit.

Written by: Uddalak Das

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