The recently launched Kanye West-linked YZY token has become another cautionary tale in the volatile world of celebrity-endorsed cryptocurrencies. Data reveals that while a handful of wallets profited, the majority of traders suffered heavy losses.
Over 51,000 Traders Faced Losses
According to blockchain analytics, more than 51,800 traders incurred losses, totaling an estimated $74 million. Out of 70,200 traders who invested in YZY, only 11 wallets managed to earn more than $1 million, and just 99 wallets made over $100,000 in profit.
The YZY token, launched on August 21 on the Solana blockchain, initially skyrocketed by 1,400% within the first hour, only to plunge over 80% shortly after. This rapid boom-and-bust highlights the risks of speculative tokens lacking intrinsic utility.
Price Drops Over 80% From All-Time High
As per Nansen data, YZY currently trades at $0.5515, with just 19,531 holders remaining. The token’s price decline mirrors the fate of many celebrity-endorsed coins, which often experience short-term hype followed by sharp corrections.
Former kickboxing champion Andrew Tate attempted to short YZY using 3x leverage, resulting in a $700,000 loss. Meanwhile, blockchain intelligence firm Bubblemaps revealed insider activity involving Hayden Davis, who reportedly sniped the YZY launch and made $12 million. Davis is also linked to previous scandals, including the Libra token case, where $57.6 million in USDC was previously frozen.
Despite significant media buzz, celebrity-backed tokens rarely achieve sustainable growth. Over 30 celebrity tokens launched on Solana in June 2024, endorsed by names like 50 Cent, Caitlyn Jenner, Iggy Azalea, and Ronaldinho, have dropped by an average of 73.23% or more. Most investors entering these projects face steep losses, while early buyers or insiders capture massive gains.
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.