YZY Token Plummets 66% as Insiders Cash In Millions

YZY's latest price was $0.6971, down 3.414% in the last 24 hours. The launch of Kanye West’s YZY meme token on the Solana blockchain in August 2025 has sparked significant discussion within the cryptocurrency community. The token generated immediate and substantial market attention following its official release, causing a notable stir across the crypto space shortly after its debut.

The launch structure and governance arrangements of YZY quickly became subjects of intense scrutiny. Blockchain analysis revealed that a highly concentrated group of insiders reportedly possessed control over a dominant portion of the token supply. This substantial pre-launch allocation concentrated in a limited number of hands raised widespread concerns about the token's distribution model and governance design from the outset. Further investigations indicated control of key assets resided within a multisig wallet, fueling allegations of inherent vulnerabilities and potential manipulative capabilities tied to the token's launch structure.

Analysis of on-chain transactions uncovered that the initial major buyer of the YZY token was linked to the same significant holder, identified as "Naseem," who had previously achieved notable profits estimated at $100 million trading the TRUMP memecoin. This connection to a known large-scale trader added another layer to the narrative surrounding the token's early activity. Shortly after reaching a significant valuation level, the project experienced a sharp decline, which analysts and market observers largely attributed to actions by these large holders securing substantial early gains, triggering a widespread sell-off.

Alongside the token launch, platforms like CoinW announced support for YZY by making it available for futures trading relatively early on. However, the rapid events following the launch transformed YZY into a case study often cited to highlight the risks within the memecoin sector, particularly concerning leveraged trading in highly volatile, speculative assets. The overall scenario prompted calls for heightened examination of token launch practices and governance safeguards, emphasizing the dangers perceived when significant control rests with a very small group at inception.

Industry voices raise concerns that such speculative activities might erode confidence in cryptocurrency markets. These insider trading suspicions underline a pressing call for regulatory frameworks in the crypto domain. According to some market observers, “Allegations of insider trading reinforce the need for transparency in the markets, potentially affecting participant confidence.” Close monitoring of significant transactions and abrupt price shifts becomes imperative amidst these allegations, as the crypto community scrutinizes timing irregularities. Discussions hint that regulatory bodies may adopt more preemptive steps in the future to tackle potential insider activity. Both investors and experts acknowledge that ensuring transaction transparency is essential to safeguarding the crypto market’s stability. Undertaking stringent regulatory oversight and monitoring might mitigate the recurrence of such disputes.

Kanye West’s memecoin YZY was launched on the Solana blockchain on August 21, 2025, attracting professional snipers despite claims of anti-bot protections. Within minutes, the token’s market cap hit $3 billion. However, it quickly collapsed by over 66% as early buyers offloaded tokens. Wallets connected to elite traders made millions. Ye’s “YZY Money” ecosystem included a payments platform and debit card. It promoted fairness through unique anti-sniping tactics, such as deploying 25 similar smart contracts. Only one was real. Despite this setup, skilled snipers bypassed these measures. Solscan data revealed that wallet AwY1VTMdhsSRTe… executed two coordinated swaps of 250,000 USDC. This swap, via the Jupiter Aggregator and Meteora DLMM Program, returned 1,196,378 YZY, with a value of $841,427.19. Shortly after, the same wallet transferred 129 SOL to another wallet, Jitotp3. The move suggested pre-coordinated funding or liquidity involvement. Lookonchain also identified wallet 6MNWV8 as an early actor. It attempted to buy YZY even before the token went live. Once trading opened, it spent 450,611 USDC to buy 1.29 million YZY. It sold 1.04 million tokens for 1.39 million USDC, a profit of over $1.5M. These wallets shared ties with earlier coordinated trades in Argentina’s LIBRA token, suggesting repeat patterns of sophisticated operations.

Data from the IQ.wiki site notes that Yeezy Investments LLC remained with 70% of the YZY token supply, leaving only 10% for liquidity and 20% for the public sale, while no USDC was paired in the first pool. The insiders could have freely added or removed any stablecoin in the pool, impacting the token value. Yet despite Ye’s insistence on fairness through Jupiter Lock vesting, the centralized power structure remained very strong. Nansen data confirmed that 13 wallets earned over $24 million from the launch. Meanwhile, three separate holders each lost over $800,000. One investor saw a $1.8 million loss. Another wallet’s losses exceeded $1.2 million. The first YZY buyer was the same trader known as “Naseem,” who previously turned $1 million in TRUMP tokens into $100 million. The consistency in elite dominance has led many to compare the YZY launch to earlier celebrity tokens such as TRUMP, Iggy Azalea’s MOTHER, and Caitlyn Jenner’s JENNER. These tokens spiked quickly due to fame and attention. However, whales entered early and offloaded profits while retail traders bought late and faced the drop. The YZY launch has sparked new questions. Can any anti-sniping defense genuinely stop insider access? Or are such tools more public relations than protection? The data suggest that despite attempts to democratize entry, coordinated actors retain control. They navigate contract deployments, fund wallets in advance, and exploit retail entry points. So far, few projects have prevented this behavior. Without strict external audits and hard-coded caps, liquidity remains vulnerable to manipulation. The picture is quite clear: celebrity coins predominantly attract a few whales early on who drain value before being acknowledged by most traders. As more tokens are being created, the observers are left wondering whether fairness is really possible or if it is just a marketing ruse.