Nearly every major meme coin took a nosedive this week, wiping billions from the crypto market in what traders are calling a “memepocalypse.” The carnage hit hard and fast, with popular tokens hemorrhaging up to 50% of their value. SPX6900 plunged from $1.28 to $0.65, while FARTCOIN – yes, that’s really its name – watched its market cap evaporate from $2 billion to a mere $538 million. Technical analysis suggests a potential turnaround as SPX6900 enters the oversold zone.
But nothing compares to the Hawk Tuah ($HAWK) disaster. The token’s meteoric rise represents the extreme volatility that experts have long warned about in the meme coin sector. Launched with fanfare on December 4, 2024, the token reached a staggering $500 million market cap before imploding spectacularly. One crafty wallet holder sniped 18% of the supply and dumped it for a cool million in profit, sending the token into a death spiral. Within 24 hours, $HAWK lost 95% of its value. The project’s downfall was accelerated by unlawful promotional tactics according to multiple court filings.
Now influencer Hailey Welch, caught in the crossfire, is speaking out. She claims she was duped about the token’s long-term prospects and says half her earnings were earmarked for charity. Welch pocketed $125,000 upfront but never saw the additional $200,000 or token allocation she was promised.
Influencer turned victim: Welch reveals $325K crypto promises vanished, with charitable donations left hanging in the balance.
She’s now cooperating with investigators as lawsuits pile up against the foundation behind the token sale.
The meme coin market’s wild west mentality is finally showing its true colors. These tokens, typically propped up by nothing more than hype and rocket emojis, have become perfect vehicles for pump-and-dump schemes. The lack of regulation doesn’t help – it’s basically the financial equivalent of the thunder dome, minus Tina Turner’s swagger.
While AI16Z shows signs of recovery from its $2.48 high, the broader market remains shaky. The sustainability of these tokens is increasingly questionable, with security vulnerabilities lurking behind their cute dog mascots and clever ticker symbols.
For now, the meme coin circus continues, but this week’s bloodbath suggests the crowd might be getting tired of the show.
