YZY Token Plummets 45.575% Amid Centralization Concerns

YZY's latest price was $0.8261, down 45.575% in the last 24 hours. Recent reports have cast a significant shadow over the Kanye memecoin, YZY, highlighting major concerns about its underlying structure and ownership. These issues have prompted serious questions for potential investors, who are now more cautious about the project's integrity and safety.

Leading crypto news outlet Blockworks recently shed light on critical vulnerabilities within the YZY project. Citing blockchain security firm RugCheck, the report highlights an alarming degree of centralized control embedded within the Kanye memecoin’s smart contract. This isn’t just a minor glitch; it points to a fundamental lack of decentralization, which is a core tenet of blockchain technology. RugCheck’s analysis revealed that the contract controller possesses excessive permissions, allowing them to arbitrarily alter key functions. These permissions are highly unusual and raise significant red flags for the project’s integrity and investor safety. Specifically, the controller can modify metadata, restrict sales, issue additional tokens, and change fees. Such capabilities give immense power to a single entity, fundamentally undermining the trust and transparency expected in decentralized finance. This level of control can lead to market manipulation and significant losses for token holders.

Beyond the smart contract issues, another worrying aspect has emerged concerning the Kanye memecoin: its ownership structure. Conor Grogan, Coinbase’s Head of Product & Business Operations, made a striking claim that resonates deeply within the crypto community. He stated that an estimated 94% of the YZY tokens are believed to be held by insiders. This revelation suggests a highly centralized distribution, far removed from the decentralized ethos often associated with successful cryptocurrency projects. When a vast majority of tokens are controlled by a select few, it creates an environment ripe for “pump and dump” schemes. Insiders can easily inflate the price by buying and then sell off their holdings, leaving retail investors with devalued assets. This concentration of power poses a substantial risk to the long-term viability and fairness of the Kanye memecoin.

Kanye West continued his controversy-filled era with his YZY token launch on Solana this week, where trading activity drove its market capitalization near $3 billion before collapsing within hours. The token, listed under multiple pool tickers on Raydium, initially saw rapid inflows that pushed its fully diluted valuation into multibillion territory before prices retreated more than 90%, leaving its capitalization closer to $137 million. The pace of YZY’s ascent and reversal mirrored past episodes in the Solana ecosystem where memecoins generated substantial liquidity in compressed windows. As Barron’s noted, the debut quickly shifted discussion toward whether these launches, often tied to well-known public figures, warrant more oversight as traders with early access capture profits at the expense of late entrants. On-chain monitors cited wallets that accumulated large allocations at market open. Independent analysis from Conor Grogan estimated that as much as 94% of the initial supply was controlled by insiders, including a single multisig wallet that at one point held 87% of the tokens before dispersing. Fee structures added another layer to the controversy. As one trader posting under the handle 0xBiZzy observed, the YZY pool was configured with a 1% base fee and dynamic adjustments that quickly moved to 2.68%, combined with a wider bin step that introduced another 4 to 5 percent of slippage. The effect left some participants facing an estimated 10% round-trip cost to enter and exit positions. Despite these costs, volume surged in the first hours of trading, producing more than $9 million in collected fees for the pool’s operators, according to the same account. Market activity revealed uneven outcomes for traders. Lookonchain tracked one whale wallet that spent 1.55 million USDC to purchase just under one million YZY tokens at $1.56, only to sell them two hours later at $1.06 for 1.05 million USDC, realizing a loss of half a million dollars. Similar trades rippled across Raydium as YZY’s price cascaded from its initial surge to near $1. The launch also revived scrutiny of West’s shifting stance toward celebrity coins. Earlier this year he said such projects exploit fan communities, even as plans reported by The Block outlined an allocation in which 70% of YZY supply would be retained by West himself. That structure and the concentration of insider holdings observed on-chain deepened criticism that retail participants were structurally disadvantaged. The sharp decline only amplified that narrative as many wallets were left with steep losses within hours of trading. During the Trump token surge earlier in 2025, Solana DEXs processed more than $27 billion in daily trades, showing how quickly speculation can flow through the network. YZY extended that pattern, briefly boosting Solana’s on-chain activity even as its trajectory resembled earlier boom-and-bust cycles. The YZY episode concentrated multiple themes in one launch: rapid capitalization driven by celebrity branding, heavy insider positioning, costly fee mechanics, and the quick reversal that left many late entrants with losses. For Solana, the event once again highlighted that memecoins remain a key driver of volume, even as questions over transparency and fairness continue to mount.

Ye, the artist formerly known as Kanye West, formally entered the cryptocurrency sector on August 20, 2025, with the launch of the YZY Money token on the Solana blockchain. Announcing via his significant following on social media platform X, Ye declared the inception of "a new economy, built on chain" and confirmed the release of "the official Yeezy token." This introduction generated immediate, widespread discussion across crypto-focused online communities.

Concurrent with the token's release, an operational YZY Money website was unveiled. The platform positions itself as a concept designed to empower users "free from centralized authority," explicitly stating that "YZY IS THE CURRENCY THAT POWERS ALL TRANSACTIONS WITHIN YZY MONEY." The website outlines functionalities supporting YZY token transactions, including a dedicated payment processor termed Ye Pay, plans for a YZY-branded payment card, and integration with the stablecoin USDC.

The token's debut generated significant market activity characterized by rapid momentum shifts. Observers reported an intense initial demand surge followed by a subsequent sharp pullback in engagement levels, illustrating the highly reactive nature of the asset's early market response. Analysis during this period flagged noteworthy transactions suggesting possible accumulation by major holders shortly after the launch.

Despite the official launch announcement from Ye, the unusual volatility and specific large transactions observed on the Solana blockchain sparked considerable debate within the cryptocurrency community. Questions arose regarding the legitimacy of promotional activities and potential vulnerabilities, leading to speculation about possible security breaches such as hacking or deepfake impersonation, although the root cause remained unconfirmed. Concerns regarding potential "rug pull" risks, where developers abandon a project after investor capital is raised, were also voiced amidst the unsettled trading patterns.

The issues surrounding the Kanye memecoin serve as a stark reminder of the volatile and often unregulated nature of the memecoin market. While the allure of quick gains can be strong, exercising caution and conducting thorough research is paramount. Always investigate the project’s whitepaper, team, and smart contract audits before investing. Look for transparency regarding smart contract functionalities. If a single entity has too much control, it is a significant red flag. Investigate how tokens are allocated. A highly centralized distribution, especially with a large percentage held by insiders, indicates high risk. Do not let hype override rational analysis. Only invest what you can afford to lose, especially in high-risk assets like memecoins. By following these guidelines, you can better navigate the complex landscape of new tokens and potentially avoid projects with inherent structural weaknesses, like those identified with the Kanye memecoin. The recent reports from Blockworks and insights from Coinbase highlight serious structural and ownership concerns regarding the Kanye memecoin. The excessive smart contract permissions and alleged high insider ownership paint a picture of a project that deviates significantly from decentralized principles. Investors must remain vigilant and prioritize due diligence to protect their assets in the ever-evolving cryptocurrency space. Understanding these risks is crucial for making informed decisions.