Kanye West Meme Coin YZY Dives 81% After Instagram Hacked for Scam

Kanye West’s official Solana-based meme coin, YZY, has plummeted nearly 81% from its peak after the rapper claimed his Instagram account was hacked to promote a counterfeit token bearing the same name [1]. The incident occurred on August 26, 2025, when West’s verified account—with nearly 20 million followers—unexpectedly followed a profile named “yzytoken.” The account was linked to an unofficial YZY token launched on the Solana-based platform Pump.fun, which briefly spiked to a $7 million market cap before collapsing to approximately $160,000 [1].

West addressed the issue on X, stating, “My Instagram has been hacked and it’s following a fake coin,” and provided the correct contract address for the official YZY token, ending in “YEEZY” [1]. He also directed followers to the official project’s X handle, @YZY_MNY, to distinguish it from the impostor.

The real YZY token had launched just a week prior amid months of speculation, reaching a fully diluted value (FDV) near $3 billion at its peak. As of the latest data, it has fallen to around $565 million FDV, with a market cap hovering just above $73.5 million [1]. On the day of the incident, the official YZY token rose nearly 1%, while the fake token had already lost 96% of its peak value by mid-afternoon.

The hack created a ripple effect across the meme coin market, with other Kanye-related tokens dropping as much as 88% following the official YZY launch [1]. Despite the crash, early investors still benefited significantly from the initial surge. Hayden Davis, associated with the controversial Libra meme coin, reportedly earned approximately $12 million from the YZY launch [1].

By 2:18 p.m. ET, West’s Instagram had removed the follow from the “yzytoken” account, suggesting the issue had been resolved. However, the event underscores the fragility of celebrity-backed crypto projects, particularly those in the meme coin space, where market movements are often driven by social media activity and influencer endorsements rather than fundamental value [1].

The incident highlights the risks of social media manipulation and the rapid volatility of meme coins, especially those tied to public figures. It also raises questions about the adequacy of security measures for high-profile social media accounts and the need for greater transparency in crypto projects that rely heavily on brand recognition.

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[1] Kanye West Meme Coin Down 81% From Peak as Rapper Says Instagram Hacked for Scam (https://decrypt.co/336897/kanye-west-meme-coin-down-rapper-says-instagram-hacked-scam)