Published in: Blog

Hawk Tuah Coin Scam Faces Allegations of Rug Pull

Author Duy

Published on: December 9, 2024

Recently, the $HAWK Memecoin Based on the Popular Hawk Tuah Meme Launched and Almost Immediately Experienced a Rug Pull, a Classic Scam Scenario. Let’s take a look at the Hawk Tuah Coin Scam and draw lessons to help you invest more safely in the market.

Key Points to Know

Hailey Welch, famous for her viral “hawk tuah” catchphrase, launched a token named HAWK.
The token debuted on Solana-based exchanges at 22:00 UTC on Wednesday, initially skyrocketing to a $491 million market cap—before experiencing a sharp drop.
HAWK secured funding from non-U.S. investors, starting with an initial valuation of $34.5 million.

Table of Contents

The Hawk Tuah Meme

The “Hawk Tuah” meme took the internet by storm after a humorous moment in a street interview by Tim & Dee TV. When asked about a move that excites men, a woman responded with the hilariously absurd phrase: “You gotta give him that ‘hawk tuah’ and spit on that thing,” delivered in a distinctive Southern accent.

This quirky reply quickly became viral, spreading across TikTok, Twitter, and other platforms through remixes, parodies, and countless debates over its meaning.

The phrase’s absurdity resonated with online culture, thriving as a shared joke where understanding wasn’t necessary—just participation. Hailey Welch, identified as the woman behind the meme, even turned the viral moment into a merchandising opportunity, launching “Hawk Tuah 2024” hats and other branded items. The meme’s success highlights how the internet embraces chaos, turning the ridiculous into cultural touchstones.

Hawk Tuah Girl Rides the Wave of Internet Fame

With overnight fame hitting her suddenly, Hailey Welch, the creator of this meme trend, didn’t feel overwhelmed. Instead, she quickly seized the opportunity. She rode the wave of fame to monetize her social media accounts on platforms like X (formerly Twitter), Instagram, TikTok, and YouTube.

She even launched her own podcast, “Talk Tuah with Hailey Welch.” Amazingly, her channel once ranked in the top three on Spotify’s podcast list in the US. Along with this massive fame came a huge number of fans and supporters, bringing her significant success.

The Hawk Tuah Coin Scam

The Hawk Tuah Memecoin

As with any popular meme on the market, numerous memecoins often emerge in its wake. The $HAWK memecoin is no exception. However, this particular memecoin stands out because its promotion involves active participation from its creator.

$HAWK is a memecoin launched on the Solana blockchain—a haven for memecoins. It was created by “overHere.gg” with the support of Hailey Welch, who, along with her team, generated significant hype among fans for this coin. On December 5, it officially launched, becoming available for trading.

Allegations of a Rug Pull

It only took about 20 minutes for everything to fall apart. As soon as trading opened, Hailey’s fans rushed to buy the memecoin, believing they were among the first to own it. However, they were caught off guard as a flood of wallets dumped tokens, causing the value of $HAWK to plummet in a dramatic red candlestick, leaving buyers in shock.

In the aftermath of the incident, numerous blockchain detectives and crypto investigators delved into the details. They quickly uncovered suspicious patterns in the tokenomics and the activity of the project’s team wallets, raising significant concerns about its legitimacy.

Hailey and her team attempted to defuse the situation by hosting a discussion on Twitter Spaces, trying to calm public sentiment. However, their efforts backfired spectacularly. The situation deteriorated further when renowned crypto investigators joined the discussion, openly accusing the team of scamming their community.

Among these investigators, the most prominent was Coffeezilla. If you follow crypto scam exposés, you’re likely familiar with his name. Coffeezilla is one of the leading figures in uncovering fraudulent projects in the crypto space. He’s well-known for exposing scams like Logan Paul’s infamous CryptoZoo. Naturally, the Hawk Tuah Girl project couldn’t escape his scrutiny.

Coffeezilla accused the project of orchestrating a rug pull and highlighted several glaring issues in its operations:

Problematic Tokenomics: 17% of the tokens were presold to “investors” under the label of “Strategic Allocation” before the public launch. These tokens had no lock-up period, allowing the holders to sell them immediately upon the token’s public release—which they did.
Insider Trading: Aside from 4% of the tokens being sent to Meteora, the remaining 96% were controlled by a cluster of interconnected wallets, a classic indicator of insider trading.
Transaction Fees: The project imposed a 15% fee on all buyer and seller transactions, claiming it was a safeguard against snipers. However, this strategy ended up netting the team nearly $2 million in fees. The most profitable wallet gained $1.3 million, while the project itself collected almost $2 million solely from these transaction fees.
Avoiding Critical Questions: The team repeatedly denied being a scam but dodged essential questions, such as:
- Who benefited from the transaction fees?
- Who received the “Strategic Allocation” tokens?
- Why weren’t the presale tokens subject to a lock-up period?
  Their evasive responses only fueled skepticism.
Targeting Crypto-Inexperienced Fans: The project openly stated that it wasn’t aimed at experienced crypto traders but instead targeted fans of the Hawk Tuah girl who had little to no knowledge of cryptocurrency—essentially preying on the uninformed.

After repeatedly facing well-founded on-chain accusations from Coffeezilla, the Hawk Tuah coin team muted him and swiftly kicked him out of their Twitter Space. However, this move only deepened participants’ suspicions. Attendees began bombarding the team with questions about the issues Coffeezilla had raised, openly labeling the project as a scam.

Adding to the absurdity, Hailey Welch—known as the Hawk Tuah girl—was the host of this Twitter Space. As pressure mounted and participants demanded answers, she abruptly announced it was time for her to go to sleep. To everyone’s shock, she ended the Twitter Space, leaving attendees stunned and frustrated.

On-chain Evidences

OverHere, one of the key figures behind the creation of this memecoin, attempted to address the backlash following the disastrous Twitter Space discussion. He claimed the team was not scamming anyone and insisted that they were working for the community’s benefit.

OverHere also stated that the Hawk Tuah coin team had not sold a single token and blamed the massive dump on snipers—bots programmed to acquire tokens early and sell them off quickly.

Unsurprisingly, this explanation was met with widespread ridicule. The reason? On-chain data doesn’t lie. Transaction records clearly showed that many wallets sold tokens without ever purchasing them during the launch—proof that these wallets had acquired their tokens during the presale.

Bubblemap.io site quickly provided information about the wallets holding the tokens.

Key Lessons for Safer Investing

The rise of memecoins and celebrity-endorsed crypto projects often brings excitement and hype, but they also carry significant risks. History has shown that many of these projects, while entertaining on the surface, often end up being scams.

The Hawk Tuah coin incident is a sobering reminder of the importance of due diligence in the world of cryptocurrency. Here are some key lessons to help investors navigate this space more safely:

Always Check the Tokenomics:
Tokenomics can reveal a lot about a project’s intentions. Watch out for red flags such as:
- Large percentages of tokens are allocated to insiders or investors before the public launch.
- The lack of a lock-up period for presale tokens can lead to immediate dumping.
- Disproportionate control of tokens by a small group of wallets, indicating potential insider trading.
Beware of Transaction Fees:
Excessive transaction fees may seem like a feature to deter bots, but they often end up as a hidden profit mechanism for the project team. Investigate where these fees are going and whether they truly serve the community’s interests.
Follow the On-Chain Data:
Blockchain transactions are transparent and immutable. Use tools to verify claims made by project teams, such as token distributions and transaction histories. If the on-chain data contradicts the team’s statements, consider it a major red flag.
Demand Transparency:
Legitimate projects openly address critical questions, such as how funds are allocated, who benefits from presale tokens, and what measures are in place to protect investors. Avoid projects where the team dodges tough questions or provides vague answers.
Understand the Target Audience:
Be cautious of projects targeting inexperienced investors, especially if they rely heavily on celebrity endorsements or fan bases with little crypto knowledge. These groups are often the most vulnerable to exploitation.
Don’t Be Swayed by Hype:
Memecoins are often launched on the back of internet trends or the popularity of a public figure. While they can generate short-term profits, many lack substance or long-term viability. Approach these projects with a critical eye and realistic expectations.
Invest What You Can Afford to Lose:
Given the speculative nature of memecoins, only invest money you’re willing to lose. Diversify your portfolio and avoid putting all your funds into one high-risk project.

The crypto world offers endless opportunities, but it also demands vigilance. By learning from past incidents like the Hawk Tuah coin scandal, investors can better protect themselves and make informed decisions.

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