- HAWK token experienced a 93% value drop within minutes of launch, with market cap briefly reaching $490 million.
- Bubblemaps analysis revealed 285 wallets controlled 96% of initial token supply through presales and gifts.
- Project insiders and advisors allegedly profited $3.3 million from immediate token sales.
- Project team denies wrongdoing, claiming sell-offs align with published tokenomics.
- Community Notes on X (formerly Twitter) challenge project team’s explanations.
The Solana HAWK token, launched by social media personality Hailey Welch, lost over 93% of its value within minutes of its debut on Wednesday, prompting allegations of market manipulation as on-chain analysis revealed coordinated selling by project insiders.
Coordinated Sell-off Pattern
Blockchain analytics firm Bubblemaps identified that 285 wallets accumulated approximately 96% of HAWK’s supply before public trading began. According to their analysis, 89 wallets sold their entire holdings, while 47 wallets liquidated at least half their positions immediately after launch.
The rapid sell-off generated approximately $3.3 million in profits for early token holders, even as retail investors watched their positions decline. Market data shows the token’s market capitalization briefly touched $490 million before collapsing.
Project Defense and Community Response
Welch’s team stated that no influencers received free tokens, and maintained that project leaders hadn’t sold any holdings. However, Bubblemaps’ investigation confirmed that while the core team retained their tokens, strategic advisors and KOLs (Key Opinion Leaders) executed substantial sales.
The project’s explanation post on X received a Community Note challenging its accuracy, suggesting potential legal consequences. The note specifically referenced “talk tuah judge,” a play on Welch’s social media persona.
Blockchain security experts note this pattern mirrors previous rug pulls – a crypto scam where project insiders dump large quantities of tokens shortly after launch, leaving retail investors with worthless assets.
Related: 10 Easy Ways to Identify a Rug Pull
The incident has sparked renewed calls for increased scrutiny of influencer-backed token launches in the cryptocurrency sector.
“The main piece going around @X is the 96% cluster seen on @bubblemaps which shows $HAWK tokens being sent by the deployer address,” the project team wrote in their defense, attempting to frame the distribution as planned tokenomics rather than coordinated selling.
✅ Follow BITNEWSBOT on Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Decrypt and Rug Radio Launch MYRIAD Platform With Built-in Prediction Markets
- Roaring Kitty Returns, GameStop Surges as Meme Stock Icon Posts Time Cover Spoof
- Nasdaq-Listed Truck Parts Maker Joins Bitcoin Rush, Plans $5M Crypto Buy
- Financial Times’ Bitcoin Critics Issue Half-Hearted Apology as BTC Hits $100K
- BIT Mining Says Dogecoin More Profitable Than Bitcoin After Halving
