Kanye West's YZY Token Collapses 65% After Insiders Control 94% Supply

Kanye West’s YZY token, launched on the Solana blockchain under the Yeezy Money brand, initially surged to a $3 billion market cap within 40 minutes before collapsing to around $1.05 billion. This rapid rise and fall sparked immediate scrutiny over the token’s structure and governance. On-chain analytics revealed that insiders controlled nearly 94% of the circulating supply, with one multisig wallet alone holding 87% before redistribution. The liquidity pool was entirely composed of YZY tokens, allowing developers to manipulate liquidity at will, a setup that exposed buyers to the risk of abrupt sell-offs [1].

The token’s volatility was further amplified by early trading behavior. Insiders reportedly made multimillion-dollar profits in the first hour by leveraging priority fees and early access. One participant earned over $6 million at the token’s peak, while another mistakenly purchased a spoof token, losing $710,000 before correcting the error [1]. These incidents fueled growing concerns about the legitimacy and safety of celebrity-backed crypto projects.

The situation took another turn when blockchain analytics firm Bubblemaps linked one of the YZY token’s early investors to an influential participant in the TRUMP token, which had previously generated $100 million in profits. This connection raised suspicions of insider trading and prompted calls for greater market transparency [1]. Bubblemaps highlighted that the initial YZY token purchases coincided with the same investor who had made significant gains in the TRUMP token, suggesting a pattern of privileged market access [1]. Analysts and investors alike now demand clearer regulatory oversight and enhanced transparency in such transactions.

The YZY token’s collapse has been interpreted by some as a classic pump-and-dump scheme, with on-chain data indicating pre-launch trading and information leaks [3]. The token’s 24-hour trading volume reached $95.60 million, reflecting its short-lived but intense popularity [4]. Despite West’s past refusal to promote a rug-pull project, the YZY token’s structure lacked safeguards and contractual clarity, drawing further criticism [5].

The broader market impact is clear: the YZY token has deepened skepticism about celebrity-driven crypto initiatives. Similar concerns have arisen with other high-profile tokens, such as the TRUMP memecoin and Argentina’s LIBRA token, both of which saw sharp declines after initial surges [1]. Analysts have noted that while celebrity endorsements generate hype, they rarely address the inherent risks of lack of transparency and governance [2].

As the crypto community continues to monitor the fallout from YZY, there is a growing consensus that stringent regulatory oversight and due diligence are essential to prevent future occurrences. Traders are increasingly wary of speculative behavior and structural vulnerabilities, particularly in projects led by public figures [6].