In a whirlwind debut, YZY Money, a Solana-based memecoin associated with Ye (the artist formerly known as Kanye West), stormed the crypto scene on Thursday, sparking a frenzy of activity and controversy. The token’s value skyrocketed by nearly 6,800% shortly after its release, momentarily achieving an eye-watering market capitalization of $3 billion. Not bad for a newcomer—yet the excitement quickly gave way to skepticism.
A Controversial Launch
Ye’s X account was the first to announce the token, but that post triggered immediate concerns. Could the account have been compromised? A subsequent video featuring Ye—or was it an AI-generated doppelgänger?—claimed to confirm the issuance. Speculation ran rampant as traders scrambled to get in on the action, driving YZY to a high of $3.16 before it plummeted back to reality.
The YZY ecosystem is pitched as a comprehensive financial suite, incorporating YZY tokens, a Ye Pay transaction processor, and a YZY Card for global spending. According to a CoinDesk report from February, the project’s structure allocated a hefty 70% of the total supply to Ye himself, with 10% reserved for liquidity and 20% for public sale.
Questions of Fairness and Transparency
Critics are already comparing YZY to other contentious tokens like Donald Trump’s TRUMP and Argentina’s LIBRA. The allocation scheme, heavily skewed towards Ye, raises red flags for retail investors, who bear the brunt of risk when liquidity is controlled by insiders. This follows a pattern seen in other launches, as explored in New Solana Launchpad, Token Mill, Bets Traders (Mostly) Care Only About Price Pumps.
To combat bot-driven manipulation, the team deployed 25 contract addresses, randomly selecting one as the official token—supposedly to ensure fairness. However, on-chain data tells a different story. Analytics firm Lookonchain identified wallet 6MNWV8 as having prior knowledge of the contract address. This insider maneuvered the system, purchasing 1.29 million tokens for roughly $0.35 each and later cashing out for a profit exceeding $1.5 million.
A larger player, flagged by OnChain Lens, made an even bigger splash. This whale invested 12,170 SOL (about $2.28 million) and is now sitting on an unrealized gain of around $6 million. The lack of a USDC pairing in the liquidity pool facilitates lucrative, albeit controversial, cash-outs—echoing the LIBRA debacle. For a deeper understanding of how market manipulation can occur, see Crypto spoofing for dummies: How traders trick the market.
The Aftermath and Market Impact
Despite the initial hype, YZY has already dipped to approximately $1, leaving some early adopters nursing significant losses. One unfortunate wallet, identified as 6ZFnRH, reportedly spent 1.55 million USDC on YZY at $1.56 per token, only to sell at $1.06—resulting in a painful $500,000 loss in a matter of hours.
The rapid rise and fall of YZY underscore the speculative nature that still envelops Solana’s memecoin market. “This kind of volatility is not uncommon but raises questions about the sustainability of these projects,” remarked crypto analyst Jenna Alvarez. “Retail investors should tread carefully in these waters.”
Looking Forward
As YZY’s rollercoaster ride continues, the broader implications for the crypto market remain murky. Will Ye’s involvement lend long-term credibility to the project, or will it suffer the fate of other flash-in-the-pan tokens? Only time will tell. For now, investors and observers alike are left pondering whether YZY can stabilize—or if it will become another cautionary tale in the annals of cryptocurrency history.
Source
This article is based on: Insiders Cash In Millions as Ye, Formerly Kanye West, ‘Apparently’ Issues YZY Token
Further Reading
Deepen your understanding with these related articles:
- Trump Jr.-tied firm raises $50M for crypto, mining as Bitcoin peaks
- Tether Taps Trump’s Ex-Crypto Council Chief for US Stablecoin Push | US Crypto News
- PEPE Drops 4% as Memecoin Sector Underperforms Broader Crypto Market
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
