YZY Token Explodes to $3B in 40 Minutes, Then Falls Amid Insider Concerns

Kanye West (now known as “Ye”) made a major splash in the crypto world with the launch of the YZY token on the Solana network. The token reached a market valuation of $3 billion within the first 40 minutes of its launch, marking a record-breaking debut. However, following this rapid surge, allegations of insider trading and liquidity manipulation emerged, causing YZY’s value to drop to $1.05 billion.

The YZY Money website describes the token as a foundation for “a new on-chain economy.” According to the site, 25 different smart contract addresses were deployed, with one selected at random as the official token. While this method was intended to deter bots, on-chain analysis revealed several major risks.

For instance, analysis from Lookonchain shows that only tokens were added to the YZY liquidity pool, giving developers full control. Additionally, Coinbase director Conor Grogan revealed that 94% of the token supply was held by insiders, with 87% stored in a single multisig wallet. This raised concerns reminiscent of past celebrity-backed token scandals.

Despite these red flags, major investors like BitMEX co-founder Arthur Hayes and trader James Wynn disclosed investments in YZY. Wynn described his move as a short-term play, referencing a similar price surge seen with Trump’s memecoin earlier this year.

Meanwhile, during the YZY launch, one trader reportedly earned $3.4 million in profit by paying high transaction fees on the Solana network. This highlights the massive returns early investors managed to capture.

This development underscores the growing interest of celebrities and political figures in the crypto market, while also reminding investors to approach such launches cautiously. Projects like Kanye West’s YZY may generate massive hype, but a lack of transparency and fair distribution casts serious doubt on their sustainability.