Haliey Welch, who gained fame from the viral 'Hawk Tuah' meme, is facing significant backlash after her cryptocurrency, Hawk, plummeted over 95% in value shortly after its launch on December 4, 2024.

Legal concerns have emerged, with some investors accusing Welch and her team of insider trading, prompting complaints to the Securities and Exchange Commission (SEC).

This incident underscores ongoing issues in the cryptocurrency space, where a few individuals often profit at the expense of many, raising serious accountability concerns.

Welch's rise to prominence began with a TikTok video that led to merchandise sales, a podcast, and the launch of an AI dating app.

Initially, the coin surged to a market capitalization of $500 million, with its price peaking at $0.00004028 from an initial price of $0.000007099.

In response to these allegations, Welch's team has committed to addressing investor concerns and stabilizing the $HAWK token's value.

Critics have accused Welch of orchestrating a 'pump and dump' scheme, where coin prices are artificially inflated before insiders sell off their holdings.

Despite Welch's claims that her team did not sell any tokens, on-chain data revealed that insiders were indeed selling, with 96% of the token supply linked to a related cluster.

Welch's marketing strategies have drawn criticism for targeting inexperienced investors, highlighting the risks associated with influencer-led cryptocurrency projects.

Concerns were raised when it was revealed that Welch received a $125,000 advance for marketing the token and was set to earn 50% of its net proceeds, further questioning her intentions.

The SEC has cautioned investors against taking financial advice from celebrities, as many are paid promoters rather than qualified investment professionals.

Community reactions have been mixed, with some finding humor in the situation while others defend Welch, suggesting she may lack the technical knowledge to navigate the complexities of cryptocurrency.