The splendid bubble and the lost truth of celebrity tokens

The rapid rise of the HAWK token

The release of the HAWK token, originally promised to provide financial support for animal charities, was initiated by social media influencer Hailey Welch, attracting the attention of tens of thousands of fans through her huge influence. As a meme coin targeting pet charities, the HAWK token quickly attracted the interest of a large number of investors. Through continuous promotion, Hailey's calls on Twitter once pushed the enthusiasm for token purchase to its peak. With the token going live, HAWK's market value soared rapidly within a few hours, with gains reaching as high as 900% at one point, allowing investors to see a chance for huge profits instantly. However, behind this bubble, there are numerous hidden risks.

Image:https://hwpaws.org/

Sharp fluctuations in token prices

Just a few hours after the HAWK token was launched, the market's enthusiasm took a sharp turn. From an initial market cap of $490 million, the token's price quickly plummeted by 91%, almost evaporating the market cap. Many investors suffered heavy losses due to FOMO buying, seeing their wealth turn into bubbles overnight. Although the early short-term profits attracted a large number of investors, this fluctuation made many realize that investing in HAWK tokens is more like gambling, as the extreme price fluctuations raise doubts about its stability in the market.

Image:https://dexscreener.com/solana/exygvxvrvujjryo65vyuhlaccxhwyztkqa7jxqit2tvr

Unveiling the token distribution behind HAWK

With the sharp decline of the HAWK token, on-chain data reveals a deeper truth. There are serious issues with the distribution model of the HAWK token. Data shows that approximately 96% of the tokens are concentrated in only 10 associated wallets, meaning that the majority of tokens were controlled by a few people before going online. This highly centralized distribution strategy allowed a few early investors to gain substantial returns during the price surge, while ordinary investors were in a passive loss state. In addition, one investor quickly grabbed 17.5% of the tokens within a few seconds after going online, earning a profit of $1.3 million, exposing the unfairness and extreme capital operation methods in the token market.

Hailey Welch's Crisis Management

After the sharp drop of HAWK token, Hailey Welch faced strong questioning from the crypto community and chose to respond to these issues through social media. She explained her team's position in the live broadcast, but her attitude appeared less resolute in the face of public criticism. The most controversial moment occurred at the end of the live broadcast, when Hailey Welch suddenly announced that she was 'going to bed', which was interpreted by the public as an act of evading responsibility.

This 'hawkward' incident undoubtedly intensified public dissatisfaction, shaking investors' trust in her even more, and this reaction also seriously damaged her image.

Law and Public Reaction

The HAWK token incident has triggered widespread legal attention, and more and more investors are seeking legal assistance. Firms such as Burwick Law have quickly intervened to help investors who have suffered losses in the HAWK token. These investors have filed complaints with the U.S. Securities and Exchange Commission (SEC) to hold Hailey Welch and her team accountable.

Meanwhile, some investors have also warned other potential investors through social media messages to stay vigilant so as not to become victims again. Despite the HAWK team's efforts to explain the difficulties the project has encountered through crisis public relations, the market's trust in this token has been severely damaged.

Conclusion: The trap of celebrity tokens and the bubble of the crypto market

The rapid rise and fall of HAWK tokens have exposed some serious issues in the cryptocurrency market. Behind celebrity tokens often lie the interests of token issuers and early investors, while ordinary investors are forced to bear the losses. In this attention-driven crypto market, although the celebrity effect can quickly attract attention, it often makes investors overlook the risks behind it.
The HAWK token incident warns us that when participating in any crypto project, we should not only pay attention to the token's economic model and technical support, but also carefully consider the distribution strategy of the token issuer and early investors. In this cryptocurrency frenzy, we may be able to draw some experiences on how to avoid becoming 'cabbage'.

Currently, the market value of HAWK is around 6.5 million US dollars (February 14, 2025). Please trade carefully and pay attention to risks.
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