In the ever-evolving world of cryptocurrency, a new phenomenon has emerged: meme coins. These digital currencies, often created as a joke or a social experiment, have captured the attention of investors and speculators alike. However, beneath the surface of their humorous origins lies a more sinister reality – one of deception, manipulation, and financial loss.

The most recent of these is Hawk Coin, a new crypto coin backed by Hailey Welch of viral fame better known as “Hawk Tuah Girl”, which has left many furious and accusing Welch of pulling the rug on Hawk Coin investors.

The Influencer Factor

Social media influencers have played a significant role in promoting meme coins, often using their large followings to endorse these digital currencies. However, as we’ve seen time and time again, these endorsements are frequently nothing more than a cleverly disguised marketing ploy. “Hawk Tuah girl” prime example of this as “influencers” attempt to monetise their 15 minutes of fame through cryptocurrency promotion.

Many have accused Welch of leveraging her online presence, convincing many to invest in a meme coin, only to have it ultimately collapse, leaving investors with significant financial losses.

“influencers” attempt to monetise their 15 minutes of fame through cryptocurrency promotion

The Anatomy of a Rug Pull

A “rug pull” is a term used to describe the act of creating a cryptocurrency, artificially inflating its value, and then suddenly abandoning it, leaving investors with worthless coins. This tactic has become all too common in the world of meme coins, with new instances emerging almost weekly. The speed at which these rug pulls occur has led some to speculate that the same individuals or groups are behind multiple scams, using different aliases and marketing strategies to deceive investors.

The Lifecycle of a Meme Coin Influencer

The lifecycle of a meme coin influencer is pretty familiar. It typically begins with the promotion of a cryptocurrency, followed by the release of a branded product. This pattern has become so familiar that it’s almost laughable, with some commentators joking that it’s a “speed run” of the influencer life.

The Consequences of Meme Coin Mania

The consequences of investing in meme coins can be severe. Financial losses are the most immediate concern, but there are also broader implications for the cryptocurrency market as a whole. The proliferation of meme coins and rug pulls has led to a lack of trust in the market, making it more challenging for legitimate cryptocurrencies to gain traction.

Hawk Coin’s value plummeted from $500 million to $60 million within 20 minutes of launching, leaving investors furious. Crypto commentator Coffeezilla was particularly furious as he joined a Twitter Space with the creators of Hawk Coin.

Coffeezilla said, “this is one of the most miserable, horrible launches I’ve ever seen in my life. I’ve been tracing it on chain for a while. You guys generated over $1M in fees while y’alls fans got rug-pulled”, before also stating he believed “were snipers but there was also insider trading directly linked to y’alls creator account”.

The team supporting Welch defended the launch stating it wasn’t a scam and “there’s no insider trading” with fees going to a foundation in the Cayman Islands. They also defended the business venture as a whole, asking “do you know how much it costs for lawyer fees to create a foundation in the Cayman Islands to hire directors?”.

In a post following the debate on Twitter, the team behind Hawk Coin said “Haliey’s Team has sold absolutely no tokens whatsoever”. However, this post now has a community note which states, “the “team” and insiders have actually been selling their token since launch. A majority have never purchased anything and have only sold the tokens they were given. Hailey is lying and will likely have to “talk tuah” judge about this”.

A Warning to Investors

So, what can investors learn from the rise and fall of meme coins? The most important takeaway is to approach any investment opportunity with a healthy dose of scepticism. Be wary of endorsements from social media influencers, and never invest in a cryptocurrency without conducting thorough research. It’s also essential to understand the underlying technology and use case of a cryptocurrency, rather than simply investing based on hype or speculation.

I understand that investing in a new coin is tempting because, well simply put, FOMO (fear of missing out). We’ve all heard that story of “the guys buying pizza for millions of dollars worth of crypto” and we don’t want to miss the next boat. But the world of meme coins is a complex and often confusing and ultimately unpredictable place.

While they may have started as a joke, the consequences of investing in these digital currencies can be very real. As investors, it’s essential to be aware of the risks and to approach any investment opportunity with caution. By doing so, we can avoid falling prey to the next big meme coin scam and instead focus on supporting legitimate cryptocurrencies that have the potential to drive real innovation and growth.

This article was created with the support of Goosed.ie’s in-house AI-assisted writing tool, designed to aid our writers, not replace them. While the tool offers outlines and context, all content is crafted and edited by the Goosed team.