Haliey Welch responds after Hawk Tuah memecoin drops 90%

Haliey Welch, the influencer behind the viral “Hawk Tuah” video clip, addressed the memecoin allegations after its market value surged and then dropped dramatically.

The Hawk Tuah (CRYPTO:HAWKTUAH) token, launched on December 4, reached a market capitalisation of about $500 million before falling by 90%.

The steep decline prompted many investors to speculate about a rug pull.

In response, Welch posted on X (formerly Twitter) on December 20, stating that she was “fully cooperating” with lawyers representing investors who filed a lawsuit.

The suit targets the creators and partners of the HAWK token, but Welch is not named as a defendant.

In the statement, Welch emphasised that she took the matter “extremely seriously” and encouraged affected parties to contact lawyers.

The lawsuit accuses the project of promoting and selling unregistered securities.

Welch, who rose to internet fame with a viral TikTok video in June, used her Hawk Tuah nickname for the memecoin promotion.

The token's launch saw a significant amount of attention, with Welch's likeness featured in the marketing materials.

Blockchain data shows that shortly after the launch, one wallet purchased around 18% of the HAWK supply and sold it for a profit of over $1 million.

Many investors, however, reported substantial losses as the price dropped.

The legal implications for Welch and the project's creators remain uncertain, especially with the SEC's stance on cryptocurrencies.

Under SEC Chairman Gary Gensler, most tokens have been considered securities.

However, regulatory changes are expected with a shift in leadership set to occur in January.

At the time of reporting, the Hawk Tuah (HAWKTUAH) price was $0.0004992.