What happened?
Hailey Welch, known as the “Hawk Tuah Girl,” was investigated by the FBI and SEC following the collapse of a meme coin launched in her name, resulting in a $400 million loss. She revealed on her podcast that federal agents came to her grandmother’s house due to her involvement with the coin. Welch claimed she had little understanding of crypto, was given pre-written promotional content, and expressed regret for trusting the wrong people.
Who does this affect?
The collapse of the Hawk Tuah meme coin affects investors who suffered financial losses due to the token’s 90% crash. Welch’s followers and fans are also impacted as they trusted her endorsements in the cryptocurrency space. Moreover, the incident has legal implications for parties allegedly involved in the scheme, although Welch herself has not been legally charged.
Why does this matter?
This event highlights the risks associated with influencer-backed tokens in the volatile meme coin market. It serves as a cautionary tale for both investors and influencers about the dangers of insufficient knowledge and oversight in crypto investments. Overall, incidents like these contribute to a growing distrust and regulatory scrutiny of the cryptocurrency market, affecting its stability and investor confidence.