The recent launch of Hawk (HAWK), a memecoin based on the Solana blockchain, has resulted in an astonishing decline of over 90% in its market value. Initially valued at $400 million, the coin’s worth plummeted to just $37 million shortly after its introduction. Despite this drastic drop, creator Hailey Welch insists that her team has not engaged in any coin sales.
What Led to the Market Decline of HAWK?
Launched on November 29, HAWK coin’s rapid ascent raised suspicions of market manipulation among users. Data from Bubblemaps indicated that a mere handful of wallets controlled 96% of the total supply, igniting concerns about the coin’s distribution practices.
Could Team’s Actions Indicate Mismanagement?
Welch vehemently denied any allegations of manipulative practices. On the social media platform X, she stated, “The team has not sold any coins, and not a single Key Opinion Leader received free coins.” To curb early investment attempts, high transaction fees were initially implemented but were later decreased.
The OverHere team, which managed the HAWK launch, also dismissed claims of manipulation. They clarified that the 96% supply control figure was reflective of addresses used during distribution. Their outlined tokenomics stipulated that Welch and her team were allocated only 10% of the total supply, restricted by a 12-month lock period and a three-year release schedule. Key insights include:
- Management claims adherence to proper tokenomics.
- Team emphasizes community-focused development.
- The volatility of memecoins is recognized as a market norm.
Despite the significant value drop, Welch and her associates are focused on regaining user trust and increasing transparency regarding their operations.