- HAWK memecoin crashes 90% in hours, sparking allegations of insider trading and market manipulation.
- Over 80% of HAWK tokens held by 10 wallets, raising suspicions of unfair distribution at launch.
- Investors file SEC complaints, questioning HAWK launch legality amid high transaction fees and profit from early trades.
The HAWK memecoin developed by Haliey Welch has come under a lot of controversy following its drastic drop in value of over 90% in the first few hours after launch. The sudden plunge has raised allegations of insider trading and market manipulation with investors crying foul over the-token’s launch.
The HAWK token was launched on December 4 at 10 PM UTC, with an initial price of $0.005492. Just several hours after its launch, the token`s price skyrocketed, growing 900% to reach $0.04916, with the total market capitalization of the token reaching $490 million at its peak. However, the sharp increase was quickly accompanied by a sharp decrease, which led to many investors losing a lot of money.
HAWK Traders Gain Millions
A review of on-chain data for the HAWK token in the early trading period showed that several “snipers” or early investors cashed out their tokens and acquired over 135 million HAWK tokens. About one trader earned $1.3 million from a single transaction which also strongly evokes the suspicions of market manipulation and gaining the unfair advantage during the launch.
Source: DexScreener
Data showed that more than 80% of the HAWK tokens were held in less than ten wallets which created doubts of price manipulation and unfair distribution of the tokens at the time of the launch.
Responding to the allegations on social media, Haliey Welch came to the defense of the launch. She said that neither her nor any influencer received free tokens and said that all the activities during the launch were above board. Welch also claimed that no tokens were given to the insiders to put aside concerns about the project’s equity.
Investors Demand SEC Investigation
However, investors were not convinced with the words of Welch, and they raised their concerns. Some of the affected investors have made their complaints to the US Securities and Exchange Commission (SEC), arguing that the launch could be in violation of the securities laws and have asked for an investigation of possible market manipulation.
Welch’s team had put into place high transaction fees at the Meteora platform in order to curb ‘sniping’- the act of buying tokens with the aim of selling them at a higher price. But, analysis of blockchain information showed that one wallet bought 17.5 percent of the total HAWK supply for almost a million WSOL and then sold all the tokens within an hour for 1.3 million WSOL.
The aftermath of the HAWK memecoin that plunged in value has led to concerns around the equity of the crypto market and the policing of memecoin launches. As the world’s top securities regulator probes into the matter, this case underlines the issues connected with highly leveraged tokens and the possibility of market manipulation in the still relatively new digital asset market.
