Solana News Today: Kanye's YZY memecoin surges, collapses, and exposes crypto's insider game

Kanye West, now known as Ye, launched a memecoin called YZY on the Solana blockchain, marking a significant entry into the crypto space. The token briefly surged to a $3 billion market capitalization within 40 minutes of its launch, according to data from Nansen. However, the gains were short-lived, with the market cap declining to approximately $1.05 billion at the time of reporting. The token is part of a broader ecosystem called "YZY Money," described as a financial system built on crypto rails, which includes a payment processor called "Ye Pay" and a global spending card called "YZY Card" [1].

YZY's structure reveals that 70% of the token supply is controlled by Yeezy Investments LLC, with 10% allocated for liquidity and 20% for public sale. This distribution model mirrors that of other celebrity-backed tokens, including Donald Trump’s $TRUMP memecoin. Critics argue that such structures disproportionately benefit insiders, as the majority of tokens remain inaccessible to the public for at least three months, a mechanism designed to prevent dumping and stabilize the price. The liquidity pool, however, only includes YZY tokens and is not paired with stablecoins like USDC, allowing developers or large holders to manipulate liquidity to their advantage [2].

On-chain data reveals significant early profits for select wallets. According to onchain analytics firm Lookonchain, 13 wallets reportedly made over $24 million in profit by selling large quantities of YZY tokens shortly after the launch. One wallet, 6MNWV8, spent 450,611 USDC to acquire 1.29 million YZY tokens at $0.35 each and later sold 1.04 million for 1.39 million USDC, netting a profit of more than $1.5 million. Another large holder, identified by OnChain Lens, invested 12,170 SOL (about $2.28 million) for 2.67 million YZY tokens and currently holds assets valued at $8.29 million—an unrealized gain of about $6 million [4].

The YZY launch has sparked allegations of insider trading. Onchain data indicates that multiple wallets had access to the contract address in advance, enabling them to buy the token before its public release. For example, one wallet spent $24,000 in priority fees on the Solana network to secure its transaction and later profited $3.4 million from the trade. Another user, who mistakenly purchased the wrong token, initially lost $710,000 but recovered their losses by buying the correct token [3].

Despite concerns, several high-profile figures and traders entered the market, citing the token's liquidity and volume as key attractions. Leverage trader James Wynn expressed optimism, comparing YZY's potential to the $TRUMP memecoin, which surged from $4 billion to $15 billion in 28 hours. Wynn said he aims to double or quadruple his investment, betting on a short-term play. BitMEX co-founder Arthur Hayes also reportedly invested in YZY, signaling confidence in the token’s trajectory [2].

The volatility and speculative nature of YZY reflect broader trends in Solana’s memecoin market. While the token reached an all-time high of $3.16, it has since fallen below $1, and over 60% of participants are currently at a loss. The token is currently trading on exchanges like Bitget, Gate, and KuCoin, with the highest trading pair being YZY/USDT on Bitget. The market's recent 61.20% drop in 24-hour trading volume indicates a decline in activity [5].

Source: [1] Kanye West (https://cointelegraph.com/news/kanye-west-memecoin-pumps-3b-launch-then-falls-amid-insider-concerns) [2] Yeezy Money (https://www.wired.com/story/kanye-west-memecoin/) [3] Lookonchain (https://www.coindesk.com/markets/2025/08/21/insiders-cash-in-millions-as-ye-formerly-kanye-west-apparently-issues-yzy-token) [4] OnChain Lens (https://www.coindesk.com/markets/2025/08/21/insiders-cash-in-millions-as-ye-formerly-kanye-west-apparently-issues-yzy-token) [5] YZY Live Price Chart (https://www.coingecko.com/en/coins/yzy)