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- Over 73% of YZY traders lost money, totaling $74.8 million.
- Only 11 wallets made $1M+, fueling insider trading concerns.
- YZY joins a growing list of failed celebrity memecoins.
The hype around Kanye West’s Solana-based YZY memecoin has turned into a disaster for most retail traders. Just over a week after its launch, the token has already lost 83% of its value, highlighting once again the risks of celebrity-backed cryptocurrencies.
From Hype to Collapse in Days
Launched on August 20 and promoted on Kanye’s official X account, YZY surged to an all-time high of $3.16 within 24 hours. However, the rally quickly reversed. As of writing, the token trades at $0.53, down nearly 4% in the past 24 hours.
The crash left the majority of holders underwater. According to analytics platform Bubblemaps, more than 73% of traders suffered losses after the memecoin’s collapse.
Bubblemaps: $74.8 Million in Trader Losses
The data reveals that 70,201 wallets bought into YZY, but 51,862 wallets lost money, representing 73.87% of participants. Losses totaled $74.8 million across those addresses.
Breakdown of trader losses:
- 3 wallets lost over $1 million each
- 108 wallets lost over $100,000
- 1,025 wallets lost over $10,000
- 5,269 wallets lost over $1,000
On the flip side, 18,333 wallets profited, earning a combined $66.6 million. Still, over 82% of these gains were under $1,000, while just 11 wallets made over $1 million, raising concerns of insider advantage.
Insider Trading Suspicions
Bubblemaps’ report strengthens earlier claims of insider trading. Several wallets reportedly bought YZY tokens before its official launch, with some insiders pocketing millions of dollars. Hayden Davis—previously linked to the LIBRA token fallout—allegedly made $12 million from the YZY token.
This uneven profit distribution reinforces skepticism around celebrity-backed memecoins, where insiders often dominate gains at the expense of retail buyers.
Another Celebrity Token Gone Wrong
YZY’s collapse is not unique. Other high-profile token failures include Sydney Sweeney’s SWEENEY token, Hulk Hogan’s HULK token, and LIBRA, promoted by Argentine President Javier Milei. Many of these projects have seen tokens lose over 90% of their value, leaving retail investors burned.
Also Read: How to Spot a Rug Pull Before It Happens 2025: 7 Proven On-Chain Warning Signs
With YZY’s rapid collapse, the episode serves as another stark reminder: celebrity-backed memecoins often favor a handful of early insiders while exposing thousands of traders to massive losses.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
