The HAWK Token once skyrocketed due to influencer promotion, but subsequently, its market value plummeted, exposing issues of uneven token distribution and early profit-taking.
The rise and fall of HAWK Token
The HAWK Token initiated by influencer Hailey Welch saw its market value soar to $490 million in a short period thanks to social media promotion, attracting a large number of investors. However, this wave of irrational growth lasted only a few hours, followed by a 91% drop in market value, triggering panic and significant losses in the market.
Centralized Distribution and Early Profiteers
On-chain data shows that 96% of HAWK Tokens are concentrated in ten associated wallets, with early investors gaining huge profits in a short period of time. This high concentration raises questions about the fairness of the Tokens, with retail investors becoming the biggest victims.
Hailey Welch’s Response to the PR Crisis
In response to community doubts, Hailey Welch reacted inappropriately during a live stream, ultimately ending the conversation with “I’m going to sleep now.” This action was seen as an evasion of responsibility, exacerbating investor dissatisfaction and trust crisis.
Legal disputes and investor rights protection
The incident has drawn legal attention, with firms like Burwick Law getting involved to assist affected investors in protecting their rights. Some investors have filed complaints with the U.S. Securities and Exchange Commission (SEC), which may trigger a broader regulatory investigation.
The Fame and Profit Effect and Market Warnings
The HAWK incident highlights the risks behind celebrity tokens and reminds investors to prudently assess token distribution and project transparency when chasing trends to avoid becoming “chives” in the market.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
