Solana Memecoin Hawk Plummets 90% After $400M Debut

The newly launched Solana-based memecoin, Hawk (HAWK), has experienced a dramatic decline in market capitalization, dropping over 90% shortly after its debut. Initially soaring to a valuation of $400 million, the token now stands at approximately $37 million, raising concerns about its launch and associated market dynamics.

A Viral Origin

HAWK was launched by Hailey Welch, who gained internet fame for her viral “Hawk Tuah” quote in a widely circulated street interview video on YouTube. The token debuted on Wednesday at 4 p.m. ET and initially attracted significant attention and investment.

However, the rapid rise was short-lived, with the market cap plummeting as allegations of market manipulation began to surface.

Allegations of Insider Control

Social media users, supported by data from Bubblemaps, pointed to potential market manipulation during the token’s launch.

• Bubblemaps Data: A screenshot revealed that 96% of the total token supply was controlled by a cluster of wallets allegedly linked to the team behind HAWK. This percentage has since decreased to 79% but continues to draw scrutiny.
• Cluster Explanation: The team explained that these tokens were distributed in alignment with the project’s tokenomics, which reserves 10% of the supply for Welch and her team with a 12-month lock and 3-year vesting period.

Welch and Team Respond

Both Welch and her team have denied allegations of manipulation.

• Welch stated on X (formerly Twitter):“Team hasn’t sold one token and not 1 KOL was given 1 free token. We tried to stop snipers as best we could through high [fees] in the start of launch on Meteora — [Fees] have now been dropped.”
• OverHere, the team behind HAWK’s launch, added:“Haliey’s Team has sold absolutely no tokens whatsoever.”

Despite these reassurances, skepticism persists within the cryptocurrency community.

Controversy Overshadows Memecoin Mania

The rapid rise and fall of HAWK highlight the risks inherent in memecoin investments, where speculative fervor often dominates over fundamentals. The allegations of insider control and market manipulation have raised red flags for investors, casting a shadow on the token’s future.

HAWK’s launch exemplifies the volatile nature of the cryptocurrency market, where transparency and trust are critical for sustained investor confidence.