Kanye West's YZY Memecoin Soars to $3 Billion, Then Crashes 56.78% in 10 Hours

Kanye West, known professionally as Ye, launched the YZY memecoin on the Solana blockchain, achieving a market capitalization of $3 billion within 40 minutes of its debut. The token was introduced through the Yeezy Money website, which describes it as a digital currency for transactions within a broader financial ecosystem. West shared the official contract address publicly on X, emphasizing the project as a “new economy, built on chain.” Despite the initial surge, the coin’s value plummeted as concerns over insider activity and market manipulation emerged [1][2].

On-chain analysis revealed that 25 contract addresses were used in the token’s deployment, with one selected at random to mitigate “token sniping.” However, these measures did not eliminate suspicions of insider trading. Further analysis indicated that liquidity pools consisted solely of YZY tokens, allowing developers to control liquidity and sell their holdings without external constraints [3]. A Coinbase director reported that insiders controlled at least 94% of the total supply, with one multisig wallet holding 87% before token distribution began [4].

The token’s value dropped to approximately $1.05 billion within hours as traders reacted to these revelations. The sell-off was compounded by unexpected delistings and hidden transaction fees, which disproportionately affected retail investors. For example, the sudden removal of the YZY/USDT pair on WEEX at 03:50 UTC on August 21, just hours before its listing on KuCoin, intensified market fears and led to immediate dumping of the asset [5]. The move was widely interpreted as a sign of regulatory or structural instability.

YZY’s trajectory reflects the typical volatility of celebrity-backed tokens. While the coin briefly achieved a peak valuation of $3.4 billion shortly after its launch in early August, it fell by 56.78% within 10 hours, according to market trackers [6]. The token’s crash was attributed to a combination of celebrity influence, unclear utility, and structural risks such as concentrated ownership and limited liquidity. Unlike traditional cryptocurrencies, YZY lacks real-world utility, which has led to comparisons with similar speculative schemes, including Argentina’s President Javier Milei’s LIBRA token [7].

Despite the decline, some high-profile traders, including leverage trader James Wynn, have expressed optimism about the token’s short-term potential, citing precedents such as ial memecoins. BitMEX co-founder Arthur Hayes is also reported to have invested in YZY. Meanwhile, some users who mistakenly purchased incorrect tokens managed to recover by acquiring the intended tokens later [8].

Ye has continued to promote the token as part of a larger Web3 initiative, including the introduction of “Ye Pay” and the “YZY Card” for global crypto payments. However, the success of these tools remains uncertain [9]. The YZY case underscores the growing trend of celebrities entering the crypto space, but it also highlights the speculative and risky nature of such projects. As with many memecoins, the long-term sustainability of YZY will depend on its ability to build a viable user base and offer tangible utility in a highly competitive and unpredictable market [10].

Source:

[1] https://coinmarketcap.com/community/articles/68a7c6e01ad5e62f4762dcc6/

[2] https://ca.finance.yahoo.com/news/insiders-cash-millions-ye-formerly-070611347.html

[3] https://stocktwits.com/news-articles/markets/cryptocurrency/kanye-west-s-coin-pops-to-3-b-then-crashes-amid-crypto-frenzy/chsSYBWRdLF

[4] https://cryptoadventure.com/kanye-west-launches-yzy-meme-coin-on-solana-hits-3b-before-crash

[5] https://cointelegraph.com/tags/blockchain

[6] https://cryptoweekly.co/news/kanye-west-yzy-memecoin/

[7] https://www.namecoinnews.com/kanye-west-launches-yzy-coin-after-delay/

[8] https://m.economictimes.com/crypto-news-today-live-21-aug-2025/liveblog/123417173.cms