Solana News Today: The Meme Coin Gold Rush Is a Coordinated Heist, Not a Game of Skill

YZY and LIBRA meme coin launches have drawn intense scrutiny from on-chain investigators, who have flagged significant red flags suggesting coordinated insider trading and front-running. Analysis of Solana blockchain data by pseudonymous on-chain sleuth Dethective revealed a direct link between a YZY sniper wallet and a cluster of wallets involved in the extraction of $21 million from the LIBRA token launch six months earlier. The YZY wallet managed to purchase tokens at $0.20, far below the average market price, and extracted over $1 million in profit within minutes of the launch. These funds were later transferred to Kamino and Binance, further deepening suspicions of pre-knowledge and market manipulation [1].

The same “sniper” pattern appeared in LIBRA’s launch, where two wallets extracted a combined $21 million. This pattern of activity implies that the same actor—or a closely coordinated group—was likely involved in both token debuts. Cyvers, a blockchain security firm, confirmed that the YZY sniper wallet overlapped with wallets used in the LIBRA extraction, reinforcing the conclusion that pre-knowledge was involved in both cases. Nansen, another on-chain analytics firm, noted that while the connection to Hayden Davis, the creator of LIBRA, could not be definitively confirmed, the timing and coordination suggest a pattern of high-level insider activity [2].

Data from Nansen revealed that 13 wallets profited more than $1 million each during the YZY token’s launch, with the top 13 earning a combined $24.5 million. The token’s price surged 1,400% in the first hour of trading, peaking at $3, before plunging 74% within 24 hours to around $0.77. Nansen also reported that out of the first 99 wallets to buy YZY, only nine still held any tokens at the time of analysis. The biggest losers, meanwhile, suffered losses of $1.8 million and $1.2 million, respectively, while another trader held tokens with an unrealized loss exceeding $800,000 [3].

The involvement of known snipers, such as “Naseem,” further complicates the narrative. Naseem, who previously made millions from the Official Trump (TRUMP) memecoin, was among the earliest to buy YZY using a wallet previously funded with TRUMP profits. While Naseem claimed to have identified the liquidity pool early, analysts remain skeptical, suggesting the pattern mirrors broader trends in the “crime season” of meme coin launches. Bubblemaps, a crypto analytics firm, labeled this as “worse than we thought,” noting that an elite group of snipers are not competing but coordinating to maximize profits through coordinated dumping and dumping patterns [4].

The launch mechanics of YZY also raised eyebrows. A wallet identified as 6MNWV8 attempted to purchase YZY before the token’s official launch, and within minutes of the launch, it sold its position for a $1.5 million profit. Another wallet paid 129 SOL in priority fees to secure front-of-the-queue access, enabling it to acquire and flip YZY at a 700% gain. Lookonchain, a blockchain analytics account, noted that these transactions suggested a deliberate, insider-driven strategy. Furthermore, at least 94% of the YZY token supply was concentrated among insiders at the time of launch, with a single multisig holding 87% of the total supply before distribution [5].

YZY’s launch also served as a stress test for the Solana network, with TrueTPS (non-vote transactions) reaching 2,300 for the first time—a new record. This surge in activity coincided with the token’s rapid price movements and highlighted the network’s capacity to handle high-traffic memecoin launches. However, despite the technical success, the economic implications of the launch were highly controversial. The token’s dramatic price swing from $3.16 to below $1 in under 24 hours drew comparisons to the LIBRA token’s infamous 97% drop and sparked renewed debate over the role of celebrities in launching crypto assets [6].

Source:

[1] title1 (https://cointelegraph.com/news/yzy-libra-sniper-wallets-insider-profits)

[2] title2 (https://cointelegraph.com/news/yzy-token-bloodbath-sees-coordinated-snipers-extract-millions-from-kanye-fans)

[3] title3 (https://www.mitrade.com/insights/news/live-news/article-3-1059727-20250822)

[4] title4 (https://www.panewslab.com/en/articles/90e42789-ab2a-41d0-ab95-ca480729e070)

[5] title5 (https://cointelegraph.com/news/judge-unfreezes-over-57m-stablecoins-libra-token-scandal)

[6] title6 (https://www.mitrade.com/insights/news/live-news/article-3-1056006-20250821)