Solana News Today: Kanye's YZY Token Meltdown Exposes Holes in Celebrity Crypto Hype

Kanye West’s YZY memecoin has suffered a dramatic collapse following its launch, with 105 traders reportedly losing between $100,000 and $1 million each, amounting to a total loss of approximately $75 million. The token, launched on the Solana blockchain, was marketed as an official Yeezy-branded cryptocurrency, but its value plummeted more than 80% in just seven days.

The token’s troubles began on August 26, 2025, when West claimed his Instagram account was hacked and used to promote a counterfeit version of the YZY token. In a post shared with his 33 million followers, West provided the address of what he described as the “real” YZY token, ending with “YEEZY.” At the same time, the fake token—promoted by the “yzytoken” profile—surged to a peak market cap of around $7 million before collapsing.

Despite the initial hype, West’s “real” YZY token failed to sustain any momentum. At its peak, the coin briefly reached a fully diluted valuation of around $3 billion. However, the token’s value quickly plummeted to a current market cap of approximately $72.2 million as of August 28. The token’s collapse highlights the volatile nature of celebrity-backed crypto projects, many of which have been viewed with skepticism by both investors and industry experts.

The YZY token was created using Solana’s Pump.fun platform and is currently available for trading on platforms such as Phantom. As of August 28, its total supply stands at 999.3 million tokens, all of which are in circulation. The token’s daily trading volume has remained relatively low at around $18.116, reflecting its diminished interest and market participation.

Industry analysts and observers have largely dismissed the token as a speculative gamble rather than a legitimate financial product. The collapse of YZY is in line with a broader trend of celebrity-branded memecoins failing shortly after launch. These tokens often rely on the star power of their creators rather than any tangible utility or long-term value proposition. For example, the $HAWK token launched by “Hawk Tuah Girl” in December 2024 briefly reached a market cap of nearly $500 million before collapsing by 95% within an hour due to pre-allocation and dumping by insiders.

Critics argue that the YZY token’s launch exemplifies the risks associated with unregulated and hype-driven crypto projects. Blockchain author David Gerard described the phenomenon as “a big game of pretend with made-up financial instruments.” Many industry participants view such tokens as nothing more than elaborate money-printing exercises with no real economic foundation.

The aftermath of the YZY token’s collapse serves as a cautionary tale for investors considering high-risk, celebrity-backed crypto projects. While these tokens can generate significant short-term interest and speculation, they often lack the infrastructure and fundamentals needed to sustain long-term value. As the YZY token continues to trade at a fraction of its peak value, many traders are left with significant losses, underscoring the importance of due diligence and risk management in the volatile crypto market.

Source: [1] Kanye West Blames Hack for Scam, 'Real' YZY Memecoin Crashes (https://www.ccn.com/news/crypto/kanye-west-blames-instagram-hack-for-memecoin-scam-industry-not-convinced-as-real-yzy-token-crashes/) [2] Yeezy Coin (YZY) Price Chart - Buy and Sell on Phantom (https://phantom.com/tokens/solana/ZT7NpvV5JSabiJEKhxgpFZ8nfeFRj6eym9c6Qohpump)