The token, which saw a 90% drop after the launch, attracted great reaction on social media. While allegations about insider sales and sniper wallets came to the fore during the launch process, Haliey Welch and her team denied these allegations.

Hawk Tuah memecoin, which was launched at 22:00 UTC time on December 4, reached a market value of $ 490 million in a short time. However, this rise was followed by a rapid decline, and the token lost 91% of its value in a few hours, falling to a market value of $41.7 million.

This sudden collapse of the token caused disappointment and serious criticism among investors.

Allegations of manipulation made the events during the launch even more controversial. According to data provided by Bubblemaps and DexScreener, 80-90% of the token supply was controlled by insider wallets and snipers.

Sniper wallets are known for manipulating prices by purchasing a large portion of the token’s supply at launch.

In her statement on her social media account, Haliey Welch stated that her team did not sell any tokens and no free tokens were given to any important names.

Welch stated that they applied high transaction fees and used the decentralized liquidity protocol called Meteora to reduce the risk of sniping during the launch. However, these statements were not enough to allay investors’ concerns.

According to data provided by Solana blockchain browser Solscanner, one wallet purchased 17.5% of the token supply for 4,195 Wrapped Solana (WSOL) immediately after launch. This amount was equivalent to approximately $993,000 at the time.

The same wallet sold 135.8 million HAWK tokens over the next hour and a half, making a profit of $1.3 million. This situation revealed the extent of the manipulation experienced during the launch.

The launch of Hawk Tuah memecoin has brought trust issues in the crypto market to the fore again. Events during the launch led investors to question their faith in memecoin projects. Despite the statements made by Welch and his team, investors suffered huge losses and confidence in the project was seriously shaken.

This incident once again demonstrated that cryptocurrency launches should be carried out in a more secure and transparent manner. Such launches, carried out through decentralized liquidity protocols, can be open to manipulation, especially during large market movements.

What happened during the launch of Hawk Tuah memecoin shows that such projects need to be supported by stricter regulations and measures.

These post-launch events offer important lessons for both investors and crypto projects. While the importance of transparency and fair processes in the crypto world is once again emphasized, it is clear that more attention and regulation is required to prevent similar events from occurring in the future.