Onchain Analysis Links $23M YZY and LIBRA Profits to Insider Trading

Generated by AI AgentCoin World
Friday, Aug 22, 2025 1:19 am ET1min read
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Aime RobotAime Summary

- Onchain analyst Dethective linked a high-value wallet to $23M in insider profits from YZY and LIBRA token launches via pre-distribution trades.

- The wallet exploited non-public information to buy YZY tokens at $0.20 and rapidly convert them to $1M+ profits, with $21M similarly extracted from LIBRA.

- YZY's $3B-to-$1.05B market cap crash and liquidity drain raised concerns about transparency, while Nansen/Cyvers confirmed coordinated wallet activity.

- The case highlights DeFi's insider trading risks, with historical patterns suggesting potential regulatory reforms to address governance gaps in token economies.

An onchain analyst known as Dethective has linked a high-value wallet to insider activities in the YZY and LIBRA token launches, with combined profits extracted amounting to nearly $23 million [1]. The wallet executed large trades immediately before token distributions, suggesting access to non-public information. In the case of YZY, the wallet acquired $250,000 worth of tokens at $0.20 each—well below the market price—and rapidly converted them into over $1 million in profit, which was then sent to a treasury wallet [2]. This same treasury wallet had received $21 million in value from the LIBRA token launch, indicating a coordinated strategy [1].

The YZY token, associated with a cultural figure and launched on

Solana
, briefly surged to a $3 billion market cap within 40 minutes before falling to approximately $1.05 billion [5]. This dramatic fluctuation, along with the rapid exit of nearly all liquidity from public token pools, has sparked concerns about the sustainability of its value and the transparency of the launch process [1]. The wallet’s selective targeting of YZY and LIBRA—without engaging with other tokens—further supports the theory of insider knowledge [2].

Onchain analytics firm Nansen and blockchain security provider Cyvers have confirmed the connection between the YZY and LIBRA wallets, indicating a strong possibility that a single actor or a closely coordinated group executed both trades [4]. While the identity of the insider remains unclear, the overlap in wallet activity suggests a premeditated operation. Naseem, a known sniper in the memecoin space, was among the early buyers of YZY, further pointing to potential collusion and the use of non-public information [4].

Dethective emphasized that the timing and scale of the trades point to an individual or group with privileged access to internal details, raising broader concerns about the fairness and transparency of decentralized token launches [1]. The absence of public comments from project teams or regulatory bodies has led to increased reliance on on-chain data for accountability.

The incident highlights the growing risks of insider trading in the blockchain and decentralized finance (DeFi) ecosystems. As token launches become more frequent and high-profile, the potential for exploitation increases, particularly in projects with limited governance mechanisms. Historical patterns suggest that similar events could influence regulatory developments and investor expectations, pushing for greater transparency and oversight in token economies [1].

Source: [1] YZY Sniper Wallet Tied to LIBRA Extraction, $23M Pulled (https://cointelegraph.com/news/yzy-libra-sniper-wallets-insider-profits)

[2] Kanye West YZY Token Linked to $23M LIBRA Profits Amid ... (https://www.ainvest.com/news/kanye-west-yzy-token-linked-23m-libra-profits-insider-trading-concerns-2508/)

[4] Onchain Analysis Suggests YZY Sniper Wallets May Be ... (https://phemex.com/news)

[5] Kanye West Launches YZY Money on Solana Blockchain ... (https://www.bitget.com/news/detail/12560604923761)