Hailey Welch
Hailey Welch has faced backlash from social media users and fans who have pointed out that her currency caused many of her fans to lose money. AFP

Hailey Welch, the girl behind the iconic "Hawk Tuah" meme, is facing backlash for a meme coin she created after the cryptocurrency exploded in value and then dropped significantly.

On Wednesday, Welch launched a $HAWK meme coin through the Solana blockchain, with the currency seeing an immense amount of initial growth. Right after the coin was launched, its' market cap rose to $500 million. However, its value began to plummet within minutes, going all the way down to $60 million, reported Express Tribune.

The 88% decrease in value the coin saw over such a short period of time has been attributed to "rug pulling" by many, a practice by which insiders sell off large amounts of the currency in their ownership, thereby decreasing its value and leaving other investors with worthless tokens.

Some experts in crypto hypothesized that the practice of "sniping" caused the coin's fluctuation in value, in which larger investors buy most tokens and risk the assets of smaller investors.

Since then, Welch has faced backlash from social media users who have pointed out that her currency caused many of her fans to lose money.

"She's gonna have to Talk Tuah judge soon," said one user, referring to Welch's iconic "Talk Tuah" podcast.

"Hawk tuah chick rug pulling a crypto and going to jail was always the logical end lol," said another.

Others blamed those who chose to invest in the coin, stating that a form of cryptocurrency created by an internet celebrity was not a wise investment choice and that buyers should have known they would lose money.

"I have zero sympathy for anyone who loses money on a celebrity crypto coin launch. If you sink ANY money, let alone a large amount, into the Hawk Tuah coin, you gotta be the dumbest motherf---er alive," said a user.

"I've been a lawyer for the last 10 years, [specialty] is in crypto. YOU CAN NOT GO TO JAIL OR GET SUED FOR RUGGING A COIN. IT IS YOUR DUMBASSES FAULT FOR BUYING A COIN CALLED $Hawk Tuah IN THE FIRST PLACE," another wrote.

"Launching the $HAWK token creates a fun, secure and innovative way for Hailey to get even closer to her community," Welch said in a public statement. "It not only empowers her fans but also eliminates the confusion posed by scammers who are constantly releasing unauthorized coins without approvals of her name and likeness."

"I had no control over the token's management," she added.

Originally published by Latin Times.

Bitcoin