Many have accused Welch of “rug pulling,” a practice where insiders sell off large amounts of a cryptocurrency, causing its value to plummet and leaving other investors with little to no return. Others in the crypto community suggested the value crash could be due to "sniping," where larger investors buy up the majority of tokens, putting smaller investors at significant risk.
The sharp decline has led to an outpouring of backlash on social media, with fans expressing frustration over financial losses. Some mocked Welch with references to her podcast, saying, “She’s gonna have to Talk Tuah judge soon,” while others criticized investors for trusting a celebrity-backed coin.
Several users argued that buying cryptocurrency from internet celebrities is inherently risky. One wrote, “If you sink ANY money into the Hawk Tuah coin, you gotta be the dumbest person alive.” A self-proclaimed crypto lawyer added, “You can’t go to jail for rugging a coin. It’s your fault for buying a coin called $Hawk Tuah.”
In response to the controversy, Welch defended the launch, describing the $HAWK token as “a fun, secure, and innovative way” to engage with her community. She also noted that the token was meant to protect fans from scams using her likeness without permission. Welch denied having control over the coin’s management, claiming the volatility was beyond her influence.