Celebrities, Crypto, and Cash: How a Meme Coin Became a Wealth Siphon

Data from blockchain analytics firm Nansen reveals that 13 wallets made over $24 million in profits by dumping the YZY token, a memecoin launched by rapper Ye (formerly Kanye West) on the Solana blockchain. The token’s price surged 1,400% within an hour of its launch, reaching a peak of $3 before retreating sharply. Within 24 hours, the token had dropped 74% to approximately $0.77, marking a dramatic pump-and-dump pattern typical of speculative memecoins. Nansen’s data shows that the top 13 wallets cumulatively extracted $24.5 million from the token dump, while over 27,000 wallets still held YZY at the time of analysis. Among the biggest losers was a wallet that realized an $1.8 million loss, followed closely by another with a $1.2 million loss [6].

The token’s launch, which occurred on Thursday, was marked by rapid trading volume and early signs of insider advantage. Onchain analytics platform Lookonchain identified wallet 6MNWV8 as having advanced knowledge of the contract address, enabling the holder to purchase and sell the token for a $1.5 million profit. Another wallet, linked to a prior mispurchase of a competing YZY token, recovered $710,000 in losses by swiftly buying the correct token after the official launch. Additionally, a high-value whale invested 12,170 SOL (around $2.28 million) to acquire 2.67 million YZY tokens, generating an unrealized profit of $6 million as the token reached its peak [6].

The token’s structure raises concerns about fair access and market integrity. According to data from the Yeezy Money website, 70% of the total YZY supply is allocated to Yeezy Investments LLC, with the remaining 10% reserved for liquidity and 20% for public sale. This concentration of supply, coupled with a single-sided liquidity pool that includes only YZY tokens, allows insiders to manipulate liquidity and potentially offload tokens without pairing them against stablecoins like USDC. Lookonchain noted this setup mirrors that of the controversial LIBRA token, which saw a similar liquidity structure [8].

The YZY launch has drawn comparisons to other celebrity-backed memecoins, such as Donald Trump’s $TRUMP and Argentina’s LIBRA. In the case of $TRUMP, the token surged from $4 billion to $15 billion in 28 hours, while the LIBRA token briefly reached $4 billion before collapsing following backlash over its promotional methods. These patterns highlight a growing trend in the crypto space, where celebrity endorsements can drive explosive hype but also expose retail investors to substantial risk. Bubblemaps further linked the YZY sniper, known as “Naseem,” to previous memecoin exploits, including a $21 million extraction from the LIBRA token [6].

Despite the controversy, several high-profile crypto traders, including James Wynn and Arthur Hayes, have expressed interest in YZY. Wynn cited the token’s liquidity and volume as compelling factors for a short-term trade, while Hayes, despite his past criticism of memecoins, appeared to have bought into YZY [2]. However, critics argue that celebrity tokens are increasingly being used as tools for wealth extraction from retail investors. One Reddit user explained how such projects typically involve a coordinated effort by a dev team and a celebrity to hype and then dump the coin, maximizing profits while minimizing accountability [7].

The YZY token’s launch underscores the volatile and speculative nature of memecoins, particularly those backed by high-profile figures. While the project is framed as a “financial system built on crypto rails,” the onchain data paints a picture of uneven access and potential manipulation. As celebrity-backed tokens continue to emerge, regulatory scrutiny and investor caution are likely to grow. For now, the YZY token remains a case study in the risks and rewards of a market driven more by hype than fundamentals [6].

Source:

[1] Kanye West (url1)

[2] Arthur Hayes (url2)

[3] Yeezy Money (url3)

[4] Nansen (url4)

[5] Lookonchain (url5)

[6] Cointelegraph (url6)

[7] Reddit (url7)

[8] Mitrade (url8)