Rapper Kanye West’s newly launched YZY token on Solana made headlines after skyrocketing to a $3 billion market cap within 40 minutes of launch. However, the hype was short-lived, as insider trading allegations triggered a sharp price correction, pushing the market cap down to around $1.05 billion.
YZY Token: A Bold Move by Kanye West
In a post on X, Kanye West (Ye) announced the official launch of the YZY token, calling it “A NEW ECONOMY, BUILT ON CHAIN.” The token powers transactions within YZY Money, which West describes as a financial system built on crypto rails.
The website, however, includes fine print cautioning users about digital asset risks and the possibility of complete loss. It also states the token is unavailable in restricted jurisdictions.
The launch strategy raised major red flags among analysts. According to Lookonchain, 94% of the supply was controlled by insiders, with a single multisig wallet holding 87% before distribution. Only YZY tokens were added to the liquidity pool, meaning developers could withdraw liquidity anytime, causing price manipulation concerns.
Some early buyers made massive profits—one wallet gained $3.4 million by paying $24,000 in Solana priority fees. Another investor managed to recover $710,000 after buying the wrong token initially. On the other hand, a few investors saw multimillion-dollar gains during the peak, with one entity sitting at $6 million profit.
Why Traders Are Still Buying YZY
Despite risks, crypto whales and high-profile traders are still entering the market. Leverage trader James Wynn confirmed buying during a 60% dip, citing the success of Donald Trump’s TRUMP token, which surged from $4 billion to $15 billion in 28 hours.
BitMEX co-founder Arthur Hayes also appears to have joined the YZY hype, signaling continued interest from big players.
Celebrity-backed tokens have had a mixed track record. Earlier, Donald Trump’s TRUMP token saw a massive rally, while Argentina’s President Javier Milei’s LIBRA token faced backlash, causing him to delete promotional posts. These incidents highlight the growing need for regulation in the memecoin space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.