Sixteenth Minute (of Fame) - Episode: "hawk tuah bonus feat. ed zitron" Summary

Release Date: February 6, 2025
Host: Jamie Loftus
Guest: Ed Zitron, Host of Better Offline

Introduction: Exploring the Digital Notoriety of Hawk Tuah

In the sixteenth episode of Sixteenth Minute (of Fame), host Jamie Loftus delves into the complex world of internet fame and its darker counterparts. Building upon the recent series on Haley Welch, known online as Hawk Tuah, Jamie introduces a special bonus segment featuring Ed Zitron, the esteemed host of the tech podcast Better Offline and creator of the "Where's Your Ed At?" newsletter. This episode focuses on understanding the Hawkcoin crypto scam, unraveling the mechanics of modern digital grifts, and examining their broader societal implications.

Conversation with Ed Zitron: Unpacking the Hawkcoin Scam

[02:00] Jamie Loftus
Jamie opens the discussion by expressing her need for expert insights to comprehend the intricacies of the Hawkcoin scam, a prominent example of a crypto rug pull.

[04:04] Ed Zitron
Ed begins by defining a rug pull, sharing an anecdote:
"One time, a friend of mine was working on a paper for law school about rug pulls and said to me, Ed, have you seen a rug pull recently? I said, I'm watching one right now."
He identifies Hawkcoin on the Polygon blockchain as the current victim, noting, "It was called Apecoin, and it was on the Polygon blockchain Molly and I were talking about."

Anatomy of the Hawkcoin Rug Pull

[04:35] Ed Zitron
Ed explains the term market cap in the context of cryptocurrencies:
"The market cap, and the term market cap, as I'm sure Molly's been over, is kind of a misnomer. It just means the value of the coin times the amount of tokens that are available."
He details how Hawkcoin's value once soared to half a billion dollars before plummeting post-rug pull, highlighting the public persona of Hawk Tuah as both a complicating factor and a hallmark of the scam's notoriety.

[06:20] Ed Zitron
Ed reflects on the societal desperation fueling such scams:
"Everyone's so desperate to try and find any way in, because just working a regular job is not sufficient enough to like rent a house, let alone buy one in many metros."
He connects this desperation to the proliferation of scams like Hawkcoin, emphasizing the cyclic nature of grifting in a "sick society."

Societal Implications: Desperation and Cynicism in the Digital Age

[10:18] Ed Zitron
Ed discusses the root causes driving individuals to participate in or fall victim to crypto scams:
"I believe it's all desperation. I believe it's because most people cannot accumulate wealth. And so they see these things that grow in these arbitrary ways."
He laments the lack of genuine wealth-building narratives in media, contrasting the rare stories of honest success with the ubiquitous tales of crypto millionaires.

[16:16] Ed Zitron
Addressing legal challenges, Ed states:
"Because it's quite tough to find the people. Because it costs a lot of money to litigate these things and because the law is fairly new."
He elaborates on the difficulty the SEC faces in regulating crypto exchanges, citing Matt Levine from Bloomberg:
"Basically all crypto exchanges are illegal. They're all illegal."
Ed expresses frustration over the vague regulatory landscape, which allows scams like Hawkcoin to persist with minimal repercussions.

Legal Challenges and Potential Repercussions

[22:32] Ed Zitron
When queried about potential consequences for the Hawkcoin scam, Ed is cautiously optimistic:
"I actually do. It's a piss poor rug, Paul. First of all, this is shit scam. It's just a dog shit scam."
He anticipates legal action:
"In the event she ever mentioned this on the podcast, she is getting dinged by the SEC for sure."
Ed underscores the severity of Hawkcoin's infractions, suggesting that regulatory bodies will eventually clamp down on such blatant scams.

[23:12] Ed Zitron
Ed highlights the legal intricacies:
"If she said anything about hawk to a coin on a podcast, she has now said, hey, hey, look sec, I'm doing an illicit security. This is an unregistered security. Check it out."
He anticipates prolonged legal battles:
"Most of these people will never see their money again. And if they do, it will take years and years."

Conclusion: The Endless Cycle of Digital Grifts

As the conversation wraps up, Ed Zitron reflects on the perpetual nature of crypto scams within the digital landscape. He emphasizes that without substantial legal reforms and societal shifts, scams like Hawkcoin will continue to exploit the vulnerable, perpetuating a cycle of deception and loss.

[24:42] Ed Zitron
In a moment of levity, Ed shares his personal sentiment:
"I feel amazing."
[24:44] Jamie Loftus
Jamie expresses her gratitude:
"Thank you so much to Ed Zitron."
She concludes by extending love to her listeners and hinting at the show's return the following week.

Final Thoughts

This episode of Sixteenth Minute (of Fame) serves as a poignant exploration of the intersection between digital fame, societal desperation, and the mechanics of modern scams. Through the expert insights of Ed Zitron, listeners gain a comprehensive understanding of how scams like Hawkcoin not only exploit individual vulnerabilities but also reflect broader systemic issues within our society and regulatory frameworks.

Notable Quotes:

• Ed Zitron at [04:35]:
  "The goal is to get a bunch of money, and then the owners start selling off the tokens."

• Ed Zitron at [06:20]:
  "Everyone's so desperate to try and find any way in, because just working a regular job is not sufficient enough to like rent a house."

• Ed Zitron at [10:18]:
  "I believe it's all desperation. I believe it's because most people cannot accumulate wealth."

• Ed Zitron at [16:16]:
  "Basically all crypto exchanges are illegal. They're all illegal."

• Ed Zitron at [22:32]:
  "In the event she ever mentioned this on the podcast, she is getting dinged by the SEC for sure."

Sixteenth Minute (of Fame) is a production of Cool Zone Media and iHeartPodcasts. For more insights into the digital world's infamous characters, subscribe and stay tuned for upcoming episodes.