The Hawk Tuah Girl memecoin scandal has taken the crypto world by storm, with a YouTube investigator revealing insights that challenge the initial claims. The popular TikToker Hailey Welch, who highlighted the project’s launch, now faces backlash as investors label the token crash a scam.

The controversy erupted after the Hawk coin’s value skyrocketed on December 4 before plummeting 91% within three hours. On-chain reports revealed mass selling by top holders, prompting accusations of insider trading. Bubblemaps analysis showed 96% of the coin’s supply clustered in one location, intensifying suspicions. Despite claims of $50M being rugged, YouTuber Coffeezilla’s investigation suggests the figure is closer to $3M.

Coffeezilla Calls Out “Worst Tokenomics”

In a live discussion on X titled “The Hawk Truth,” Coffeezilla interrogated Hailey Welch, Howie Mandel, and a team member. He criticised their tokenomics, branding them as a scam. He highlighted that the team allocated 17% of tokens from day one, enabling early investors to dump their holdings and trigger the crash.

“Releasing 17% of tokens immediately was reckless. What did you expect would happen when insiders got their tokens?” Coffeezilla questioned.

Presale Profiteering and Investor Losses

Coffeezilla’s investigation found that a presale gave 285 investors access to millions of tokens. Among them, 89 wallets dumped their entire holdings, leading to the collapse. A single trader lost $1.4M within minutes of the crash. The biggest sniper reportedly earned $1.3M in profits, while the team gained $3M through a hefty 15% trading fee.

The high fees were defended by Welch, claiming they were meant to deter snipers. However, this measure failed, further angering investors.

Insider Transactions and Team Silence

Coffeezilla’s analysis also identified direct transactions worth $50K from the main account, pointing to insider trading. While the team denied some allegations, their vague responses during the live session did little to reassure the community.

The Hawk coin saga serves as a warning to crypto enthusiasts, highlighting the importance of scrutinising projects before investing.