Onchain Analysis Links YZY and LIBRA Sniping to $23M Profits

An onchain analyst known as Dethective has uncovered a connection between a wallet involved in sniping the YZY token and a set of wallets that extracted $21 million from the LIBRA token six months prior, revealing a total of nearly $23 million in profits, likely obtained through insider information [1]. The findings were shared through a series of posts and highlight a wallet that purchased $250,000 worth of YZY tokens at $0.20 each—well below the market price—and quickly converted it into over $1 million in profit, which was then transferred to a treasury wallet [2].

The same treasury wallet had previously received large inflows from the LIBRA token launch, where the so-called “Libra sniper” wallets collectively pulled $21 million in value [1]. These combined transactions suggest a coordinated effort involving privileged knowledge and significant capital. Dethective emphasized that the sniper did not engage in any other token sniping activities, further supporting the claim that the trades were based on non-public information [1].

Onchain analytics firm Nansen and blockchain security provider Cyvers have confirmed the link between the YZY and LIBRA wallets, indicating a high likelihood of a single actor or closely coordinated group behind both incidents [4]. While it remains unclear whether the activity is directly connected to Hayden Davis, who is associated with the LIBRA token, Cyvers noted that the overlap itself is strong evidence of a premeditated and strategic operation [1]. Additionally, Naseem, a well-known sniper previously associated with the TRUMP memecoin, was among the early buyers of YZY, further raising questions about the nature of the trades [4].

YZY, a token linked to Kanye West and launched on Solana, initially surged to a $3 billion market cap within 40 minutes before declining to around $1.05 billion. The token peaked at $3.16 earlier in the day but had since dropped by more than 60% in 24 hours [5]. West described YZY as part of a broader economic system called “YZY MONEY,” intended to support transactions within his digital ecosystem [1].

The findings have intensified scrutiny around token launches, particularly regarding the potential for insider trading and the integrity of decentralized finance markets. Dethective noted that the timing and precision of the trades suggest an operator with access to non-public information, raising concerns about fairness in the ecosystem [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/)

[3] Onchain Sleuth Links Kanye West's YZY Token To LIBRA ... (https://financefeeds.com/onchain-sleuth-links-kanye-wests-yzy-token-to-libra-wallets-in-23m-extraction-scheme/)

[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)