Solana News Today: Celebs, Crypto, and Chaos: Why YZY's Billion-Dollar Ride Ends in a Crash

YZY, a new meme-based cryptocurrency launched by rapper Kanye West—now known as Ye—sparked immediate frenzy on the Solana blockchain, reaching a market capitalization of $3 billion within 40 minutes of its debut. The token, part of a broader financial initiative called YZY Money, was promoted on social media by West with a promise of “a new economy built on chain.” The token operates within a system that includes a payment processor, Ye Pay, and a digital spending card, YZY Card. The initial token supply was split among public allocation (20%), liquidity (10%), and vested allocations for Yeezy Investments LLC (70%) [3].

However, the token’s meteoric rise was followed by a significant drop, with its market cap falling to approximately $1.05 billion within hours. On-chain analysts have raised concerns about the potential for insider sales and liquidity manipulation. According to data from Lookonchain, at least 94% of the token supply was initially held by insiders, with a single multisig wallet controlling 87% of the tokens before distribution [1]. The YZY Money website also included a disclaimer warning users of the risks of digital assets, including the potential for total loss [1].

One early buyer who mistakenly purchased the wrong token lost $710,000 but later recouped their losses by acquiring the correct token. Another user reportedly made a $3.4 million profit by paying a $24,000 priority fee on Solana to secure a fast transaction. Meanwhile, an unidentified entity was sitting on a $6 million gain when the token hit its peak [1].

Despite the volatility and red flags, several high-profile figures in the crypto space, including BitMEX co-founder Arthur Hayes and trader James Wynn, have expressed interest in the token. Wynn cited the success of the TRUMP memecoin, which surged from $4 billion to $15 billion in 28 hours, as a reason for his investment. “Aped $YZY on a 60% pull back,” he wrote, adding that he aims to double or quadruple his investment [1].

Celebrity-backed memecoins have had a mixed history this year, with previous launches, such as the TRUMP token and Argentina’s LIBRA token, drawing both attention and controversy. The LIBRA token, promoted by Argentine President Javier Milei, briefly hit $4 billion but crashed after the post was deleted amid backlash from the community [1]. These cases highlight the risks and unpredictable nature of celebrity-driven tokens, which often rely on social influence and speculative trading behavior.

Community warnings have also surfaced, with members of online forums cautioning against the potential for a “pump and dump” scheme. One Reddit user from the GoodAssSub community described the signs as classic: celebrity promotion, early insider dominance, and rapid price spikes followed by sharp declines. “Don’t let the FOMO trick you into becoming exit liquidity,” the user warned [2].

The YZY token’s launch has reignited debates around the role of celebrities in crypto and the need for clearer regulatory frameworks. While the project introduced an anti-sniping mechanism by deploying 25 contract addresses, with only one chosen as the official token, the high concentration of tokens among insiders has raised eyebrows among on-chain analysts [3].

Source: [1] Kanye West memecoin hits $3B, but falls after insider ... (https://cointelegraph.com/news/kanye-west-memecoin-pumps-3b-launch-then-falls-amid-insider-concerns) [2] Regarding YEEZY MONEY : r/GoodAssSub (https://www.reddit.com/r/GoodAssSub/comments/1mvyew1/regarding_yeezy_money/) [3] Kanye West drops YZY meme coin on Solana (https://cryptobriefing.com/yzy-meme-coin-solana-launch/)