The launch of Kanye West’s YZY token on the Solana blockchain has turned into a major controversy after blockchain data revealed a massive pump-and-dump event. According to Nansen analytics, 13 wallets collectively pocketed over $24.5 million in profits by dumping the token shortly after launch—leaving thousands of retail investors at a huge loss.
YZY Token Soars 1,400% Then Crashes 74%
The YZY token debuted on Thursday, spiking 1,400% within an hour and reaching a peak price of $3. However, the hype didn’t last long. Within 24 hours, the token plunged 74%, trading at around $0.77, raising alarms of insider trading and sniper activity.
- More than 56,000 wallets interacted with the token at launch.
- Over 27,000 wallets still hold more than $1 worth of YZY.
- Out of the first 99 buyers, only 9 wallets still hold any YZY.
The top 13 wallets made over $1 million each, with the top 10 alone extracting $18 million. Meanwhile, some investors faced devastating losses:
- Biggest loser: A wallet lost $1.8 million.
- Another lost $1.2 million.
- One trader is still holding YZY with an unrealized $800K loss.
An Elite Group of Snipers
Blockchain analytics platforms like Bubblemaps revealed that the first YZY buyer was a known sniper who previously made millions with the TRUMP memecoin. Reports indicate a coordinated group of snipers operates behind these celebrity token launches, sharing funds and targeting new projects to extract profits.
A blockchain investigator linked one sniper, “Naseem,” to wallets behind the LIBRA token, which allegedly pulled off a $21 million extraction scheme.
Quote from analyst “Dethtective”:
“These celebrity coins are often marketed as a way to onboard people, but in reality, it looks like a wealth transfer to the rich.”
Celebrity Memecoins and Pump-and-Dumps
The YZY token incident follows a pattern seen with other celebrity-backed tokens:
- HAWK token by TikTok influencer Haliey Welch dumped 90% after launch, leaving retail traders at heavy losses.
- Similar cases have involved Kim Kardashian, Iggy Azalea, Caitlyn Jenner, and Lindsay Lohan.
Even crypto influencer Arthur Hayes joked:
“Oopsie… fam next time pls don’t let me trade shitters like YZY. Should have just kept two-steppin.”
The YZY token saga highlights the risks of celebrity-endorsed memecoins. While insiders make millions, retail investors often end up holding worthless tokens. Always research before investing and beware of pump-and-dump schemes in the volatile crypto space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
