Kanye West's YZY Token Hits $3B Then Falls Amid Insider Concerns

Several well-known traders have entered the market for a newly launched token promoted by rapper Kanye West, which briefly surged to a market capitalization of $3 billion but has since retreated to around $1.05 billion [1]. The token, named YZY, was launched on the Solana blockchain and was promoted by West—now known as Ye—via a post on X, where he shared the contract address and website for Yeezy Money, a project he describes as “A NEW ECONOMY, BUILT ON CHAIN.” According to the project’s website, the YZY token is intended to power transactions within a “financial system built on crypto rails” [2].

The token reached a peak valuation of $3 billion just 40 minutes after its launch but quickly lost much of its value amid growing concerns over insider trading and early sales. On-chain data from platforms like Lookonchain indicated that a significant portion of the token supply was held by insiders, with one single multisig wallet reportedly controlling 87% of the supply before distribution [3]. This has raised red flags among investors, reminiscent of similar issues seen in other celebrity-backed memecoins.

A user shared a screenshot suggesting that West had warned as early as February 2025 that he had been approached to promote a fake cryptocurrency for $2 million, involving the staged appearance of a hacked account [2]. While this adds to the intrigue around the project, it has not alleviated concerns about the fairness of the token’s distribution.

Despite the volatility, several prominent figures in the crypto space have continued to invest in the token. Leverage trader James Wynn, for example, cited the token’s liquidity and volume as strong indicators of potential returns, even suggesting that whales might be attracted to it due to its similarities with Trump’s memecoin, which saw a 4x gain in just 28 hours [1]. BitMEX co-founder Arthur Hayes also appeared to have purchased the token, further fueling speculation about its short-term potential.

One of the most notable cases of early success came from a user who reportedly made a $3.4 million profit and paid $24,000 in priority fees to ensure fast transaction processing on the Solana network [1]. Another user mistakenly purchased the wrong token but was able to recover all losses by acquiring the correct one later. Meanwhile, an early buyer reportedly sat on a $6 million profit when the token peaked [3].

The Yeezy Money website also includes disclaimers warning users about the risks associated with digital assets, including the potential for complete loss [2]. Additionally, the token is not available in certain jurisdictions, though the website does not specify which ones. These disclaimers highlight the speculative nature of the investment, particularly in the context of celebrity-driven projects.

Celebrity-backed tokens have had a mixed track record in recent months. For instance, Argentine President Javier Milei’s support of the LIBRA token led to a short-lived spike in its value before the token crashed under public backlash. Earlier in 2025, US President Donald Trump launched the TRUMP memecoin, which saw a sharp rise in value in its early days [1]. These examples underscore the unpredictable nature of memecoins fueled by high-profile endorsements.

While the YZY token’s rapid rise and fall have been attributed to both hype and insider concerns, it has not deterred traders from entering the market. Observers continue to monitor whether the token will recover or remain a short-lived phenomenon in the crowded memecoin space [3].

Source:

[1] Cointelegraph - Kanye West YZY memecoin pumps $3B on launch, then falls amid insider concerns

https://cointelegraph.com/news/kanye-west-memecoin-pumps-3b-launch-then-falls-amid-insider-concerns

[2] advfn.com

https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96679790/kanye-west-yzy-memecoin-hits-3b-but-falls-after

[3] Lookonchain Analysis

https://khabarpu.com/b.htm?u=Kanye-West-YZY-memecoin-hits-%243B%2C-but-falls-after-insider-concerns_Y29pbnRlbGVncmFwaC5jb20vbmV3cy9rYW55ZS13ZXN0LW1lbWVjb2luLXB1bXBzLTNiLWxhdW5jaC10aGVuLWZhbGxzLWFtaWQtaW5zaWRlci1jb25jZXJucz91dG1fc291cmNlPXJzc19mZWVkJmFtcDt1dG1fbWVkaXVtPXJzcyZhbXA7dXRtX2NhbXBhaWduPXJzc19wYXJ0bmVyX2luYm91bmQ=