Cryptocurrency debacle: Haliey Welch pockets millions, investors lose everything!

Cryptocurrency debacle: Haliey Welch pockets millions, investors lose everything!

A few days ago, Haliey Welch, better known as “Hawk Tuah Girl,” launched her cryptocurrency $HAWK, but it quickly failed in spectacular fashion. Just 15 minutes after its launch on Wednesday, which it announced in a podcast with billionaire Mark Cuban, the currency experienced a dramatic 90 percent drop in value. Welch, who urged her 2.5 million Instagram followers and 400,000 Twitter subscribers to invest, pitched the token as a "really good thing," but as prices plummeted, many of her fans were hit with steep losses. Haliey himself is said to have made $50 million through insider activity, while analysts are talking about a possible fraud, in the form of a “pump and dump” scheme that is common in the crypto world.

Just five minutes after launch, the memecoin had reached a capitalization of almost $490 million before abruptly plummeting to $60 million. The term “rugpull” is often used in this context, where developers raise funds and then abandon the project. According to reports, some investors have already filed complaints with the SEC, while Welch and her team maintain on social media that their currency was not a scam. Nevertheless, the possibility of insider trading involvement is being discussed, which will further escalate the situation, according to the portal PalmBeachPost confirmed.

Don't let the accusations slide

Despite the strong allegations, Welch vehemently defends herself against the allegations and claims that her team never sold tokens. She also emphasized in a post that her coins were locked for a year. Nevertheless, analysts like Today.at their doubts as to whether it is a legitimate trade or a well-organized scam. However, some traders who invested in the early stages were able to make big profits, while others had to say goodbye to their savings in a matter of minutes.