YZY memecoin, launched by Kanye West, hit a $3B valuation within 40 minutes.
Token value dropped significantly amid insider trading allegations.
94% of the token supply was initially held by insiders.
Despite controversy, whales like Arthur Hayes and James Wynn are still buying.
The event adds to the growing concern around celebrity-driven crypto projects.
On Thursday, Kanye West officially announced the launch of the YZY memecoin via his X account.
Source: X (@kanyewest)
The post included a contract address and a link to the official Yeezy Money website, which claims to be “a new economy, built on chain.”
According to the website, YZY serves as the native token of “Yeezy Money,” a decentralized financial system designed to facilitate on-chain transactions.
The goal appears to be building a blockchain-based ecosystem centered around Kanye West’s brand and influence.
In a follow-up post, West confirmed:
“The official YZY token just dropped.”
Within 40 minutes, the memecoin reached a $3 billion market cap, a staggering feat, even in the volatile world of crypto. But this momentum was short-lived.
Despite its initial success, YZY memecoin has since fallen dramatically in value. As of writing, the token’s market cap sits around $1.05 billion, according to Nansen.
A closer inspection of the token launch revealed troubling signs of potential insider trading.
The Yeezy Money site states that 25 different contract addresses were created, with one selected at random to discourage sniping bots. However, data suggests otherwise.
Source: Yeezy Money
Coinbase director Conor Grogan revealed that 94% of YZY’s total supply was initially held by insiders, with 87% in a single multisig wallet. Though the tokens were later distributed to various wallets, the high concentration of supply has sparked concern.
Lookonchain noted that only YZY tokens were added to the liquidity pool, allowing developers or insiders to manipulate prices by altering liquidity settings.
One investor, reportedly with insider knowledge, mistakenly bought the wrong YZY token, losing $710,000. However, they recovered the full amount by purchasing the correct token later.
Another early buyer profited $3.4 million, even paying $24,000 in Solana priority fees to expedite their transaction. Onchain Lens reported yet another wallet sitting on $6 million in profits at YZY’s peak.
Despite the controversy, big-name crypto traders are still buying YZY memecoin, citing its high liquidity and potential for short-term gains.
BitMEX co-founder Arthur Hayes is among those who have purchased the token.
Source: X (@CryptoHayes)
Well-known leverage trader James Wynn also entered the market, buying YZY during a 60% pullback. He cited the meteoric rise of Trump’s memecoin as a comparable play:
“Aped $YZY on a 60% pull back. $TRUMP ran from $4bn to $15bn in 28 hours. 4x.”
YZY memecoin is a cryptocurrency launched by Kanye West on the Solana blockchain. It aims to serve as the native token for the Yeezy Money ecosystem, promoting on-chain financial activity.
While officially promoted by Kanye West, concerns over insider trading and liquidity manipulation have raised red flags in the crypto community. Investors are advised to proceed with caution.
Within 40 minutes of launch, the token reached a $3 billion market cap. It has since dropped to around $1.05 billion.
Yes, YZY is currently tradable on decentralized exchanges, but due diligence is strongly recommended due to ongoing volatility and risk concerns.
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