- Kanye West’s YZY token hit $3 billion in value just 40 minutes after its launch on Solana.
- Over 94% of the YZY token supply was held by insiders, raising serious concerns of manipulation.
- Early buyers made millions as the token’s price dropped sharply following accusations of insider trading.
Rapper Kanye West’s new Solana-based cryptocurrency, YZY, reached a $3 billion market cap within 40 minutes of launch. West, also known as Ye, promoted the token through his social media, directing users to a website describing it as a decentralized financial system. The platform named it “YZY MONEY,” with features including Ye Pay and a crypto credit card.
However, the surge was short-lived. Shortly after the token’s peak, its market cap fell sharply. At the time of writing, it was valued at around $1.05 billion, according to analytics firm Nansen. The memecoin sparked rumours in February through social media regarding its launch.
Concerns Over Insider Activity
Blockchain data shows signs of possible insider trading. Onchain analysis revealed that over 94% of the total token supply was initially held by insiders. One multisignature wallet reportedly controlled 87% of the supply before distributing it to other addresses.
Additionally, Lookonchain reported that only YZY tokens were added to the liquidity pool. This allowed developers to modify liquidity freely and potentially sell tokens without prior notice. One wallet, believed to have insider knowledge, mistakenly bought the wrong token and lost $710,000. It later recovered by purchasing the correct one.
Massive Gains and High Risks
Some early investors made significant profits. One user paid $24,000 in priority fees on the Solana network to secure a fast purchase. That transaction reportedly resulted in a $3.4 million gain. Another early wallet reached a $6 million profit during the token’s price peak.
Despite volatility, several crypto traders expressed interest in YZY due to its high trading volume. Some saw it as a short-term opportunity, referencing other high-performing memecoins like TRUMP.
Questions Around Legitimacy and Ethics
The YZY website cautions users about risks and claims the token is not meant as an investment. It describes YZY as a symbol of support for a new economy. It also highlights that one of 25 contract addresses was selected randomly to prevent sniping.
In February, West had publicly rejected involvement in memecoins. He had previously warned fans about fake promotions using his name. The sudden pivot and launch of YZY have raised questions about the project’s authenticity.
Kanye West’s store and website now list YZY as a payment option, adding to its perceived legitimacy. However, suspicions remain due to insider activity and the token’s rapid decline after launch.
