Whale Outmaneuvers YZY's Volatility, Nets $2.1M Amid Chaos

A whale is currently three times long on YZY with a floating profit of $2.12 million, according to on-chain data. The trader, identified under the alias “Naseem,” entered the market just seconds after YZY’s launch on the Solana blockchain on August 21 and executed a $250,000 USDC investment to secure nearly $1.2 million worth of YZY. This whale has since engaged in a series of liquidity operations within a Meteora pool, netting $1.02 million in USDC and maintaining a significant position in the token [1]. Despite YZY’s price dropping by 73% over the course of a week, the whale continues to hold a long position with the potential to add to these gains [1].

YZY, the unofficial token tied to Kanye West’s Yeezy brand, saw a meteoric rise to a market cap of over $3 billion within hours of its launch. However, this rapid ascent was followed by a sharp decline, with the token’s price falling from a peak of $3.16 to approximately $0.66. The extreme volatility has drawn comparisons to other celebrity-backed meme coins, such as TRUMP and HAWK, where early investors reaped massive profits while retail traders faced significant losses. On-chain data from Bubblemaps suggests that the top six wallets control over 90% of YZY’s supply, with one anonymous whale converting $767,000 into quick profits before experiencing a $231,000 loss during the subsequent price drop [1].

The pattern of celebrity-driven token launches, in which a select few early buyers amass large gains, is increasingly common in the crypto space. Naseem, who previously earned over $100 million from the TRUMP token in February, is suspected of having privileged access to launch events. Bubblemaps has questioned how the same trader managed to secure the first tokens in multiple high-profile meme coin debuts, including TRUMP, HAWK, and now YZY. The firm noted that despite the purported implementation of an anti-sniping mechanism in YZY’s smart contract, Naseem’s wallet managed to bypass it and acquire the first tokens [1].

The dominance of whales in YZY’s market structure raises concerns about fairness and transparency. Nansen data indicates that 13 major wallets have already locked in $24.5 million in gains before distributing their positions. One large holder spent $2.2 million to acquire 2.7 million tokens at an average price of $0.82, resulting in $1.3 million in unrealized gains [1]. In contrast, retail investors have been hit hard, with one wallet alone losing $1.8 million. This concentration of ownership underscores the risks associated with celebrity-backed meme coins, where early insiders reap outsized rewards while retail traders bear the brunt of volatility.

As YZY continues to trade in the aftermath of its dramatic price swings, the broader meme coin market is shifting toward projects with more tangible utility and long-term potential. While YZY exemplifies the hype-driven nature of celebrity tokens, alternative projects such as Layer Brett (LBRETT) and Token6900 (T6900) are gaining traction for their combination of meme appeal and blockchain infrastructure. These projects aim to offer more sustainable value propositions, with features such as Ethereum-based Layer 2 technology and staking rewards. As investors seek safer and more promising opportunities, the future of celebrity-backed tokens like YZY remains uncertain [2].

Source:

[1] Whale Behind $100M TRUMP Gains Tied to Kanye West’s YZY (https://coingape.com/whale-behind-100m-trump-gains-tied-to-kanye-wests-yzy-insider-trading/)

[2] Kanye's YZY Pumps to $3B on Solana, Crashes 60% (https://www.mitrade.com/insights/news/live-news/article-3-1064244-20250824)