From
Fame To Fallout: Hawk Tuah
Girl Faces Legal
Heat After
90%
Coin Plunge
From Fame To Fallout: Hawk Tuah Girl Faces Legal Heat After 90%
Coin Plunge
by Christian Encila
4 minutes ago
in Crypto News
0
From a viral sensation to a hotly anticipated meme coin, “Hawk Tuah Girl” is
now the subject of a legal battle.
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The digital asset developers named after the viral social media meme are now
facing a legal battle filed in the US• Экономика » Финансы » Платежные средства » Доллар США District Court for the Eastern District
of New York.
At the center of the legal storm is the “$HAWK” token, which surged in value
immediately after its launch and briefly hit a $490 million market valuation
Wednesday before dropping 91%, with an updated market cap of $41.7 million.
More than a dozen investors immediately filed the complaint, with Alex Larson
Schulz, Overhere Limited, Clinton So, and the Tuah The Moon Foundation as
defendants.
$HAWK Started Strong, Then Crashes By 91%
The complaint filed by investors of the Hawk Tuah Girl-inspired meme coin was
for violations of the existing federal securities laws.
Haliey Welch, the Tennessee woman who became a viral sensation , inspired the
meme coin and was not included in the suit. Welch’s viral video attracted
attention and millions of followers on social media.
Her popularity led to her developing podcasts, for which she invited many
high-profile guests, including Wiz Khalifa and Mark Cuban.
Welch’s claim to fame was the basis for a cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта coin, $HAWK,
introduced to the market last December 4th, with an initial market cap of
$16.69 million.
Hours after its launch, the meme coin breached the $490 million market cap.
However, the surge was momentary, as it plunged by 91%, dropping to a market
valuation of just $41.7 million the next day.
Total crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта cap at $3.19 trillion on the 1D chart: TradingView.com
Hawk Tuah: Following The Meme Coin Template
Meme coins have emerged as a popular category within the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
sector. They are defined by their connection to viral posts, internet humor,
and community engagement.
One reason for meme coins’ popularity is their accessibility, giving retail
traders and first-time investors the chance to participate in the community.
According to reports, many of the $HAWK’s investors were first-time crypto
buyers inspired by Welch’s viral popularity. The lawsuit pointed out that the
steep decline in the token’s market value caused financial damages to
investors.
The suit filed in a New York court has produced claims of insider trading and
that some developers purposely abandoned the project after raising and gaining
from the token’s price.
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Politician – Details
Hawk Token An Unregistered Security?
The complainants argued that the token showed the characteristics of an
unregistered security based on previous legal decisions and cases.
They added that the project’s developers used Welch’s popularity and social
media engagement to market the token and create unique branding.
The complainants further argued the token’s initial success was based on
Welch’s entrepreneurial skills and almost zero investor participation.
Meanwhile, market commentators say that the $HAWK’s collapse and allegations
of insider trading may undermine current and future crypto projects.
According to George Georgiades of Borderless Innovations Lab Inc., meme coins
have raised specific issues that the Securities and Exchange Commission has
not addressed in the past.
Featured image from Tayfun Coskun/Anadolu; Kanawatth/Getty Images, chart from
TradingView