Kanye West’s YZY token exploded onto the crypto scene this week, delivering a rollercoaster launch that minted instant millionaires while wiping out latecomers.
🚀 $3B Peak Before Collapse
According to Nansen, YZY soared to a staggering $3 billion market capitalization within 40 minutes of launch. By Thursday afternoon, the market cap had fallen to $1.05 billion as insiders began offloading their holdings.
Blockchain tracker Lookonchain flagged issues immediately: YZY’s liquidity pool contained only YZY tokens—no USDC—allowing developers to move liquidity freely, a tactic often seen in celebrity-backed token launches.
💰 Insiders Win Big
One insider wallet (6MNWV8) bought 1.29 million YZY at $0.35 using 450,611 USDC. Within hours, it sold most holdings for $1.39 million, securing more than $1.5 million in profit. Another trader split buys across two wallets, turning 450,000 USDC into $3.4 million, even spending 129 SOL ($24,000) in priority fees to front-run the crowd.
Coinbase’s Conor Grogan noted that 94% of YZY’s supply was initially in insider hands, with one multisig wallet controlling 87% before dispersal.
📉 Whales Take Heavy Losses
Not all players walked away winners. One whale spent 1.55M USDC on YZY at $1.56, selling two hours later for 1.05M USDC, losing nearly $500,000. A leverage trader has already burned $160,000 across failed longs in just one hour.
🌟 Celebrity Hype Drives Demand
Despite risks, hype continues. BitMEX co-founder Arthur Hayes disclosed he bought YZY, while trader James Wynn compared the frenzy to Donald Trump’s memecoin, which quadrupled in under 28 hours.
West, worth $400 million per Forbes, had previously rejected a $2M offer to promote a fake token. His official YZY site warns of the “potential for complete loss.”
The chaotic launch underscores how celebrity-backed tokens can deliver lightning-fast riches—or devastating losses—within hours.
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