Rapper Kanye West's YZY token launched on Solana saw its market cap soar to $3 billion just 40 minutes after release, but concerns over insider selling affected most of the gains.
In a post on Thursday, West (now renamed Ye) shared the Yeezy Money website and contract address, calling it the 'new on-chain economy.' Following this, West announced the official release of the YZY token.
After its release, the market capitalization of the YZY token reached $3 billion, but according to data analysis platform Nansen, as of the time of writing, that market cap has dropped to $105 million.
Concerns about insider trading were raised after the release of the YZY token. Analysts pointed out that the YZY token was only added to the liquidity pool, allowing developers to sell the token at any time by modifying the liquidity. At least 94% of the token supply is held by insiders, with a single multi-signature wallet holding 87% of the supply.
Despite this, some well-known crypto traders still purchased the token. Leverage trader James Wen believes that due to liquidity and trading volume, large investors may be interested in the YZY token, and he plans to invest short-term in hopes of achieving multiplied returns.