Authored by Turner Wright via CoinTelegraph.com,
Hailey Welch, the influencer behind the viral ‘Hawk Tuah’ TikTok video, has issued a statement following the rapid rise and fall of a memecoin named after her that launched in December.
In a post on Dec. 20, Welch stated that she was cooperating fully with lawyers representing investors in the Hawk Tuah (HAWK) token.
The investors have filed a lawsuit against the project’s creators and partners, although Welch herself was not named as a defendant, alleging that they were involved in promoting and selling an unregistered securities offering.
A statement posted on X on Dec. 20. Source: Hailey Welch
On Dec. 4, the HAWK token was launched, reaching a market capitalization of around $500 million before plummeting by 90% shortly after, leading many to suspect a rug pull.
Welch urged those affected to reach out to lawyers and emphasized that she was taking the situation very seriously.
From TikTok fame to memecoin advocate?
Following a TikTok video that went viral in June, Welch gained internet notoriety and adopted the Hawk Tuah persona and brand.
Her image was used for the HAWK token, which she promoted on social media.
According to blockchain records, a wallet quickly acquired a significant portion of HAWK tokens after the project’s launch, buying approximately 18% of the memecoin supply and selling it for over $1 million in profit.
Despite this, many investors in the memecoin reported substantial losses as the price surged and then crashed.
It remains uncertain whether Welch or the project’s founders could potentially face legal consequences in the U.S. as a result of the memecoin launch.
Under the leadership of Securities and Exchange Commission (SEC) Chair Gary Gensler, most tokens have been considered securities by the regulatory body. However, the SEC is expected to transition to Republican control starting in January.
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