What is bitcoin?
Bitcoin is a decentralized digital foreign money created in 2009 by an individual or individuals working below the title “Satoshi Nakamoto.”
What occurred with Haliey Welch’s $HAWK cryptocurrency launch?
LOS ANGELES – Haliey Welch, recognized for her viral “Hawk Tuah” TikTok video, launched her personal cryptocurrency, $HAWK, on the Solana blockchain. Nevertheless, the memecoin’s worth plummeted by 95% shortly after its launch.
Initially hitting a market capitalization of $500 million, $HAWK rapidly dropped to $25 million, leading to important monetary losses for buyers. The controversy escalated when some buyers accused Welch and her crew of insider buying and selling and filed complaints with the Securities and Alternate Fee (SEC).
In response, Welch denied any wrongdoing, stating on social media that her crew “tried to cease snipers as finest we might” and had not bought any tokens.
What are memecoins, and why are they so dangerous?
Memecoins are cryptocurrencies impressed by web memes or tendencies. In contrast to conventional cryptocurrencies like Bitcoin or Ethereum, memecoins usually lack intrinsic utility, counting on neighborhood enthusiasm and viral enchantment.
According to Coinbase, memecoins like Dogecoin and Shiba Inu are purely speculative buying and selling devices, often related to excessive volatility and danger. Their worth usually fluctuates based mostly on hype or endorsements moderately than tangible use instances.
Why did $HAWK face backlash?
The $HAWK coin’s disastrous launch has drawn criticism from the crypto neighborhood, with accusations of poor planning and potential foul play. In accordance with a report from Rolling Stone, some buyers have already filed complaints with the Securities and Alternate Fee (SEC), alleging that the mission might have been a “rug pull.”
Haliey Welch seems at SiriusXM Studios on July 31, 2024 in Los Angeles, California.
A rug pull happens when builders inflate the hype round a cryptocurrency mission to draw buyers and drive up its worth. As soon as the mission good points momentum, builders promote their holdings for a revenue, inflicting the coin’s worth to break down and leaving different buyers with important losses.
Welch and her crew have denied these allegations, asserting on social media that they didn’t promote any tokens and labored to attenuate the impression of sniper bots that manipulated the coin’s provide. Nevertheless, the abrupt worth drop and lack of safeguards have led many to query the mission’s execution and transparency.
What’s subsequent for $HAWK and Welch?
Welch’s crew has pledged to handle issues and stabilize the coin’s worth. Nevertheless, the SEC complaints and allegations of a “rug pull” might result in authorized scrutiny. As memecoins proceed to draw merchants with the promise of excessive returns, specialists urge warning, emphasizing the significance of analysis and understanding the dangers earlier than investing.
