The launch of the YZY token, a Solana-based memecoin supposedly tied to rapper Ye—formerly known as Kanye West—has left a trail of financial woes in its wake. Over 70,000 wallets, according to blockchain data visualization tool Bubblemaps, have been singed by this latest speculative fire. The token, part of a larger “YZY Money” ecosystem that also promised payment rails and a branded card, was unveiled last week. However, the reality is far from rosy, with thin liquidity and rapid speculation enabling insider gains while retail investors shoulder heavy losses.
Whales Feast, Retail Investors Suffer
The numbers are stark. Bubblemaps’ data indicates that more than 51,800 addresses have lost between $1 and $1,000. Meanwhile, 5,269 wallets are down $1,000 to $10,000, and 1,025 wallets have shed between $10,000 and $100,000. At the top of this grim leaderboard, 108 wallets are nursing six-figure losses, and three unfortunate traders have seen over $1 million each evaporate. On the flip side, a mere 11 addresses booked profits of $1 million or more, representing just 0.015% of all participants.
“The concentration of profits in so few addresses underscores the structural flaws from the outset,” said crypto analyst Jamie Linton. “It’s a classic tale of early insiders reaping rewards while the majority are left with crumbs.”
Design Flaws and Market Manipulation
The YZY token’s architecture, it seems, was flawed from the start. A staggering 70% of the supply was allocated to Yeezy Investments LLC, locked under Jupiter’s vesting system. Only 20% was available to the public, with the remaining 10% earmarked for liquidity. Such a setup made the token susceptible to rapid price manipulation. The pool was seeded exclusively with YZY tokens, lacking a stablecoin pair—an open invitation for sudden liquidity pulls. This mirrors tactics seen in other memecoin ventures, as detailed in our article on hackers hijacking celeb Instagram accounts to push dubious tokens.
A case in point: on-chain sleuths identified a wallet, address 6MNWV8, which spent 450,611 USDC to acquire 1.29 million YZY at $0.35. The same address flipped 1.04 million tokens for 1.39 million USDC, netting a quick $1.5 million profit while still retaining tokens worth about $600,000. This kind of insider maneuvering is eerily reminiscent of the short-lived LIBRA token fiasco in Argentina earlier this year.
A Grim Outlook for Memecoins
As of now, YZY’s market cap has shrunk to $544.9 million, with liquidity standing at $42.7 million and holder count dwindling to 26,590. This is a sharp decline from the initial frenzy, which saw valuations soar to $3 billion. Daily trading volume has nosedived to $1.8 million, a mere shadow of its former self.
YZY’s trajectory is emblematic of the larger trend in celebrity-backed memecoins. These tokens often promise the moon but deliver little more than market volatility and disappointment. While a small number of insiders may enjoy windfall gains, the average investor is often left out in the cold. This is part of a broader trend in the crypto world, as seen in the efforts of crypto giants like Galaxy, Jump, and Multicoin seeking to raise a massive Solana treasury.
“YZY’s performance is a cautionary tale,” remarked Linton. “Unless you’re part of the inner circle, the odds of achieving life-changing gains are virtually nil.”
The fallout from the YZY token’s collapse raises questions about the sustainability of such ventures and whether regulatory bodies need to step in to protect retail investors from similar future debacles. With the cryptocurrency space continuing to evolve, and with celebrity endorsements remaining a double-edged sword, the crypto community is left to ponder: Is the hype worth the risk?
Source
This article is based on: YZY Hype Machine Leaves Traders Nursing Millions in Losses on Ye-Linked Token
Further Reading
Deepen your understanding with these related articles:
- Crypto wallet labeled ‘Coinbase hacker’ buys $8M of Solana
- Crypto Booms as Fed Goes Dovish: Here’s What It Means for Ethereum, Solana and Dogecoin
- Crypto Investor Loses $1.54 Million in Devastating Phishing Scam
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.
