Money Influencer Vivian Tu: 3 Things To Learn After Hawk Tuah Meme Coin Fallout

When social media star Hailey Welch, also known as the “Hawk Tuah girl,” announced her own cryptocurrency meme coin, $HAWK, it seemed like an easy way for celebrity-influenced crypto fans to make quick money. It soon turned into disaster when it crashed just hours after its launch.

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In a recent TikTok video, financial influencer Vivian Tu discussed the fallout from the controversy, and some lessons everyone can take from it.

Exercise Caution With ‘Celebrity’ Frenzy

The Hawk Tuah coin’s rapid rise and fall demonstrates why people viewing meme coins as a solid investment should be cautious. With no actual value behind it, the coin was fueled by hype.

When that hype faded, so did its worth. Tu explained that people were putting their money on Welch’s celebrity status more than a concrete investment.

“This was never an investment. This was always gambling,” she said.

Lucas Barcelo, entrepreneur and founder of Thrivin’ Life, agrees that investors looking for real return were betting on nothing more than a trend.

“How are people calling this an investment, when it has statistically worse odds than even gambling?” he asked.

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Always Understand the Legalities

While Welch and her team claimed the launch wasn’t a scam, the controversy raised a serious question: Was it legal?

According to Kaspersky, while crypto rug pulls are always unethical, unless they’re hard rug pulls (with malicious backdoors), they’re not necessarily illegal.

Tu pointed out that while it might not have been outright illegal, the ethical concerns are clear.

Don’t Let FOMO Dictate Financial Decisions

FOMO (fear of missing out) has been a driving force behind many meme coin investments, as people jumped on the train after seeing others profit.

But blindly following the crowd has led to losses for many in the meme coin game, and both Tu’s and Barcelo’s advice is clear: Don’t invest in hype, invest in knowledge.

“If you’re going to use meme coins and NFTs as part of your portfolio, you should approach these investments with the adequate amount of risk versus reward, and decide if you can stomach the downside,” said Barcelo.

The collapse of the Hawk Tuah meme coin offers a sharp reminder: Without understanding the fundamentals and risks, entering the crypto space can be like gambling.

Whether it’s meme coins or any speculative investment, the takeaway is the same: Research, caution and professional guidance are key to navigating a volatile market.

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This article originally appeared on GOBankingRates.com: Money Influencer Vivian Tu: 3 Things To Learn After Hawk Tuah Meme Coin Fallout

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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