Insider Claims, Investor Fury, and Market MeltdownHawk Tuah (HAWK), a memecoin spearheaded by influencer Hailey Welch, ignited controversy within the cryptocurrency community after a dramatic rise and crash following its December 4 launch. HAWK initially saw an astonishing surge in market capitalization, peaking at $490 million before collapsing by 91% within hours, plunging the price to $0.002627. The fallout has left the coin valued at $26.3 million, sparking allegations of market manipulation and insider profiteering.Source: DexscreenerBlockchain analytics from Bubblemaps have cast a glaring spotlight on the launch. Data revealed that wallets allegedly linked to insiders controlled 96% of the total supply at launch, a figure later reduced to 79%. One wallet, in particular, drew ire after acquiring 17.5% of the total supply for $993,000 and flipping it for $1.3 million, triggering a wave of sell-offs. High transaction fees, purportedly implemented to thwart bots, are now under scrutiny as a potential tool for manipulation.Source: XWelch, addressing the uproar, denied wrongdoing. She claimed her team abstained from selling any tokens post-launch and asserted that no influencers received free tokens. Welch further emphasized the use of Meteora, a decentralized platform, to counter bot-driven activities during the launch. Source: XDespite her defense, the outrage among investors remains palpable. One investor reported losing $43,000, while another swapped $1.4 million worth of a different memecoin, incurring a staggering $1.3 million loss during HAWK’s collapse.Criticism escalated when crypto investigator Stephen Findeisen, popularly known as Coffeezilla, labeled the launch "one of the most miserable and horrible" events in crypto history. In a heated X Spaces debate, Coffeezilla confronted Welch over accusations of insider trading and token sniping. The discussion took a contentious turn when Coffeezilla was removed, fueling further tensions within the community.Source: XThe legal and regulatory fallout has been swift. Law firms are stepping in to assist affected investors, and complaints have reportedly reached the SEC alleging fraud and manipulation. Meanwhile, Welch pointed to HAWK's tokenomics to counter claims of misconduct, highlighting that 10% of the supply allocated to her team was locked for 12 months with a three-year vesting period, and these tokens remained untouched during the crash.This article has been refined and enhanced by ChatGPT.