Solana News Today: Kanye West's $YZY Token Surges 6800% Then Plunges 56% in Hours

Kanye West’s $YZY token made a dramatic debut on the Solana blockchain, briefly reaching a $3 billion market cap within 40 minutes of its launch [1]. The token, launched under the name “Ye,” saw a 6,800% surge in price, peaking at $3.16, before collapsing to $1.47 amid intense profit-taking and liquidity concerns [2]. Despite the initial euphoria, the token’s value dropped nearly 56% within hours, according to GeckoTerminal data, with the market cap falling to approximately $146.7 million following the correction [3].

One of the most notable trades involved a whale who spent $2.28 million to acquire 2.67 million $YZY tokens. These were later transferred and valued at up to $8.29 million, highlighting the extreme volatility and potential for rapid gains—though also underscoring the risks of speculative trading [4]. However, concerns emerged over the structure of the liquidity pool, which contained only $YZY tokens rather than a stablecoin like USDC. Analysts warned this could allow the developer—or in this case, West—to exert influence over price movements [5].

The token remains highly centralized, with 70% of the total supply still under Ye’s control, raising questions about decentralization and long-term stability. The remaining 20% is allocated to investors, and 10% to liquidity, with vesting managed through Jupiter Lock on the Solana chain [6]. Additionally, West promoted the token heavily on social media, offering a $20,000 prize pool for early participants and driving further speculation [7].

The token is part of a broader ecosystem called YZY Money, which includes a crypto payments service called Ye Pay and a dual-currency spending tool, YZY Card. Despite the ambitious vision, the token’s performance highlighted the speculative nature of celebrity-backed crypto projects [8]. The token’s sharp decline serves as a reminder of the risks involved in projects driven by hype rather than fundamentals. Over 94% of the supply was reported to be controlled by insiders, raising further concerns about fairness and equal access [9].

YZY’s launch reflects a broader trend of celebrity influence in the crypto space, with similar projects such as the TRUMP memecoin gaining traction. However, the token’s volatility and concentrated ownership point to the potential for market manipulation and speculative bubbles [10]. The event underscores how high-profile figures can generate short-term excitement and liquidity but also amplify risks for retail investors in an unregulated environment.

The $YZY token’s brief $3 billion market cap and subsequent collapse illustrate the unpredictable nature of memecoins and the growing intersection of entertainment and finance in the crypto sector. While celebrity-backed tokens can attract massive attention and trading volume, their long-term viability remains uncertain without strong infrastructure and clear utility [11]. The YZY case serves as a cautionary example for investors navigating the rapidly evolving and highly speculative digital asset market.

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Source:

[1] title: YZY Token Launch by Kanye West Sparks Frenzy ... (https://www.xt.com/en/blog/post/yzy-token-launch-by-kanye-west-sparks-frenzy-followed-by-market-drop)

[2] title: Kanye West's $YZY Token Launch on Solana Sparks ... (https://solanafloor.com/news/kanye-west-s-yzy-token-launch-on-solana-sparks-frenzy-and-scrutiny)

[3] title: Kanye West's New YZY Token Plunges 56% Minutes After ... (https://crypto-economy.com/kanye-wests-new-yzy-token-plunges-56-minutes-after-launch/)

[4] title: Why YZY's Billion-Dollar Ride Ends in a Crash - Crypto (https://www.ainvest.com/news/solana-news-today-celebs-crypto-chaos-yzy-billion-dollar-ride-ends-crash-2508/)

[5] title: Kanye's $YZY Hits $3B, But Is It Another Celebrity Hype ... (https://www.bitget.com/news/detail/12560604923331)

[6] title: Solana News Today: Kanye West's YZY Memecoin Surges ... (https://www.ainvest.com/news/solana-news-today-kanye-west-yzy-memecoin-surges-1400-crashes-70-hours-2508/)

[7] title: Kanye West YZY Token Rockets Before Insider Fears Cut ... (https://blockchair.com/news/insiders-cash-in-millions-as-ye-formerly-kanye-west-apparently-issues-yzy-token--49f1673ef58274c9)

[8] title: Kanye West’s $YZY Token Briefly Hits $3B Market Cap Before Sharp Decline (https://cryptofrontnews.com/kanye-wests-yzy-token-briefly-hits-3b-market-cap-before-sharp-decline/)

[9] title: Kanye West YZE Memecoin Hits $3B Amid Crypto Boom (https://www.finance-monthly.com/kanye-ye-yze-memecoin-crypto-2025/)