Kanye West's YZY Token Surges to $3B Then Dips Amid Insider Concerns

Several well-known traders have purchased the YZY token, a new digital asset promoted by rapper Kanye West, which briefly surged to a valuation of $3 billion but has since declined to around $1.05 billion [1]. The token, launched on the Solana blockchain and associated with West’s Yeezy Money initiative, was introduced via a post on X, where West shared the contract address and described it as “A NEW ECONOMY, BUILT ON CHAIN.” [2]

Within 40 minutes of its launch, the token reached a $3 billion market capitalization. However, concerns over insider trading soon emerged, causing a significant portion of the gains to vanish. On-chain analytics platform Lookonchain noted that at least 94% of the token supply was held by insiders, with one multisig wallet holding 87% of the supply before distribution [1]. The liquidity pool only included YZY tokens, allowing developers to manipulate liquidity and sell at will [1].

One user reported mistakenly purchasing a different token, resulting in a $710,000 loss, but recovered all funds by buying the correct YZY token later [1]. Another user reportedly made a $6 million profit at the token’s peak, while a third paid $24,000 in priority fees to ensure a fast transaction, ultimately securing a $3.4 million gain [1].

Despite the controversy, prominent figures in the crypto space have invested in the token. Leverage trader James Wynn expressed optimism, noting that whales are likely drawn to the token due to its liquidity and volume. He cited President Donald Trump’s memecoin, which surged from $4 billion to $15 billion in 28 hours, as a precedent for such speculative gains [1]. BitMEX co-founder Arthur Hayes also appeared to have invested in YZY [1].

The token’s website warns users of the risks associated with digital assets, including the potential for complete loss, and restricts access to users in certain jurisdictions [1]. Meanwhile, West’s net worth is estimated at $400 million according to Forbes [1]. Observers continue to monitor the token's volatility and the broader implications for celebrity-backed digital assets.

Sources:

[1] Kanye West YZY memecoin pumps $3B on launch, then falls amid insider concerns – Cointelegraph (https://cointelegraph.com/news/kanye-west-memecoin-pumps-3b-launch-then-falls-amid-insider-concerns)

[2] BTCUSD - Kanye West YZY memecoin hits $3B, but falls after ... – Advfn (https://mx.adv.fn/bolsa-de-valores/COIN/BTCUSD/crypto-news/96679790/kanye-west-yzy-memecoin-hits-3b-but-falls-after)