{"id":4567,"date":"2024-12-21T07:46:57","date_gmt":"2024-12-21T07:46:57","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=4567"},"modified":"2024-12-21T07:46:57","modified_gmt":"2024-12-21T07:46:57","slug":"from-fame-to-fallout-hawk-tuah-girl-faces-legal-heat-after-90-coin-plunge","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=4567","title":{"rendered":"From Fame To Fallout: \u2018Hawk Tuah Girl\u2019 Faces Legal Heat After 90% Coin Plunge"},"content":{"rendered":"
\n

From a viral sensation to a hotly anticipated meme coin, \u201cHawk Tuah Girl\u201d<\/a> is now the subject of a legal battle.<\/p>\n

The digital asset developers named after the viral social media meme are now facing a legal battle filed in the US District Court for the Eastern District of New York.<\/p>\n

At the center of the legal storm is the \u201c$HAWK\u201d token, which surged in value immediately after its launch and briefly hit a $490 million market valuation Wednesday before dropping\u00a0 91%,<\/a> with an updated market cap of $41.7 million.<\/p>\n

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.<\/p>\n

$HAWK Started Strong, Then Crashes By 91%<\/h2>\n

The complaint filed by investors of the Hawk Tuah Girl-inspired meme coin was for violations of the existing federal securities laws.<\/p>\n

Haliey Welch, the Tennessee woman who became a viral sensation<\/a>, inspired the meme coin and was not included in the suit. Welch\u2019s viral video attracted attention and millions of followers on social media.<\/p>\n

Her popularity led to her developing podcasts, for which she invited many high-profile guests, including Wiz Khalifa and Mark Cuban.<\/p>\n

Welch\u2019s claim to fame was the basis for a cryptocurrency coin, $HAWK, introduced to the market last December 4th, with an initial market cap of $16.69 million.<\/p>\n

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.<\/p>\n

<\/p>\n

Hawk Tuah: Following The Meme Coin Template<\/h2>\n

Meme coins have emerged as a popular category within the cryptocurrency sector. They are defined by their connection to viral posts, internet humor, and community engagement.<\/p>\n

One reason for meme coins\u2019 popularity is their accessibility, giving retail traders and first-time investors the chance to participate in the community.<\/p>\n

According to reports, many of the $HAWK\u2019s investors<\/a> were first-time crypto buyers inspired by Welch\u2019s viral popularity. The lawsuit pointed out that the steep decline in the token\u2019s market value caused financial damages to investors.<\/p>\n

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\u2019s price.<\/p>\n

\u2018Hawk\u2019 Token An Unregistered Security?<\/p>\n

The complainants argued that the token showed the characteristics of an unregistered security based on previous legal decisions and cases.<\/p>\n

They added that the project\u2019s developers used Welch\u2019s popularity and social media engagement to market the token and create unique branding.<\/p>\n

The complainants further argued the token\u2019s initial success was based on Welch\u2019s entrepreneurial skills and almost zero investor participation.<\/p>\n

Meanwhile, market commentators say that the $HAWK\u2019s collapse and allegations of insider trading may undermine current and future crypto projects.<\/p>\n

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.<\/p>\n

Featured image from Tayfun Coskun\/Anadolu; Kanawatth\/Getty Images, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

From a viral sensation to a hotly anticipated meme coin, \u201cHawk Tuah Girl\u201d is now the subject of a legal battle. The digital asset developers named after the viral social media meme are now facing a legal battle filed in the US District Court for the Eastern District of New York. At the center of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-4567","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4567"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/4567\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}