Viral influencer meme coin 'Hawk Tuah' plummets 90% upon launch, sparking insider trading allegations and slams on social media



Hawk Tuah, a

meme coin created based on an internet meme, saw its price fluctuate dramatically upon launch, plummeting 90% from its peak in just a few hours.

Hawk Tuah memecoin dumps 90% amid backlash over controversial launch
https://cointelegraph.com/news/hawk-tuah-memecoin-dumps-90-percent-outrage-token-launch-insider

Hawk Tuah is an onomatopoeia for spitting, first used by Harry Welch in an interview on the YouTube channel Tim & Dee TV, and quickly became an internet meme.




The actual price chart looks like this. After launching at 10 pm on December 4, 2024, the market capitalization rose to $490 million (about 73.5 billion yen), but quickly reversed and fell to about $40 million (about 6 billion yen).



According to Bubblemaps and Dexscreener, which track and visualize blockchain data, 'snipers,' an organization that rapidly bought up large amounts of token supply at launch, held large amounts of Hawk Tuah at one point. Together with 'insiders' who held tokens before launch, it is estimated that they held 80% to 90% of the supply.



Further analysis of the data revealed that one wallet purchased 17.5% of Hawk Tuah’s supply for $993,000 within seconds of its launch, then sold it off when the price rose, making a profit of $1.3 million.



Although the act of spreading false information with the intent of fluctuating the prices of securities such as stocks is prohibited under the Financial Instruments and Exchange Act as '

spreading rumors ,' it is not regulated in the context of virtual currency trading, which often becomes a problem.

A popular YouTuber is accused of getting the equivalent of 57 million yen by manipulating the price of virtual currency with his fans - GIGAZINE



The method of inflating the price and then selling it when outsiders jump on it has long been known as 'pump and dump,' and Hawk Tuah is a typical example of this. Meanwhile, Harry Welch, who created Hawk Tuah, denied the involvement of insiders and said that 'the team has not sold any tokens,' but there is a community note that says 'we are actually selling them,' and numerous complaints have been made in the reply section.




Law firms have also appeared advertising, saying, 'If you lost money on Hawk Tuah, contact us to learn about your legal rights.' The situation is extremely confusing.


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in Note, Posted by log1d_ts