With a market cap soaring past $3 billion, 94% of the tokens are held by insiders. Kanye's YZY coin is not a decentralized revolution but a carefully planned capital game.

On August 21, renowned rapper Kanye West officially launched his MEME coin YZY. With the halo of celebrity, YZY's market value once exceeded $3.4 billion but quickly fell back below $1 billion.

On-chain data reveals that multiple insider wallets had already laid out their plans before the official announcement. One address made a profit of over $1.5 million from a single transaction, and some insiders even paid exorbitant fees of $24,000 for priority trading.

01 The Capital Game Under the Star Halo: The Rapid Rise and Instant Collapse of YZY Coin

Kanye announced the launch of a new brand YZY MONEY on social media and issued the token YZY1 on Solana. To prove authenticity, the official released a video endorsement featuring Kanye himself.

The price of YZY coin has experienced a rollercoaster ride. Shortly after its launch, its market value once exceeded $3.4 billion but quickly fell, dropping below $1 billion as of the time of writing.

Celebrity token issuance is not new. Previously, Trump also issued the TRUMP token, YZY, but Kanye's entry still triggered a strong market reaction.

02 An Unfair Starting Line: Highly Concentrated Token Distribution and Internal Manipulation

The tokenomics distribution plan of YZY is concerning. Only 20% is allocated for public issuance, 10% for the liquidity pool, while over 70% of the shares are held internally.

Coinbase executive Conor Grogan pointed out that at least 94% of YZY tokens are held by insiders. Among them, 87% were previously controlled by a single multi-signature wallet and have now dispersed to multiple addresses.

The project team adopted a so-called 'anti-front-running mechanism,' pre-deploying 25 contract addresses and ultimately randomly selecting one as the official contract. However, this mechanism instead left ample room for internal funds to operate.

03 Insider's Running Feast: The Truth Revealed by On-chain Data

Blockchain data shows that multiple insider wallets had funds prepared before the announcement and purchased YZY at the first opportunity.

Insider wallet 6MNWV8 even knew the contract address in advance and attempted to buy the day before the official announcement. This wallet spent $450,000 to purchase 1.29 million YZY at $0.35 each, then sold 1.04 million at $1.39 million, making a profit of over $1.5 million.

Another insider spent 450,000 USDC through two wallets to purchase 1.89 million YZY at $0.24 each, then sold 1.59 million at $2.12 each, exchanging for 3.37 million USDC.

04 Familiar Manipulation Tactics: High Similarity to LIBRA Coin

Worryingly, the operational model of YZY is highly similar to the previously crashed LIBRA coin. Crypto KOL scooter (@imperooterxbt) stated that it can be 99% certain that Hayden Davis (LIBRA project advisor) participated in the release of the YZY token.

Coincidentally, just hours before the YZY announcement, a U.S. judge lifted the freeze on $57.6 million in funds belonging to the Libra founders. This timing raises suspicions about the connection between the two.

Similar to LIBRA, YZY's liquidity pool includes only YZY without USDC being added. Developers can sell YZY by adding/removing liquidity, which is a common manipulation tactic.

Most surprisingly, YZY's official documentation explicitly includes a 'class action waiver' clause. This means investors agree not to file class action lawsuits regarding any claims and agree to pay the opposing party for attorney fees and litigation costs incurred in seeking relief.

In addition to the YZY token, Kanye also launched Ye Pay and YZY Card. Ye Pay is a crypto payment processor that promises lower fees than the typical 3.5% charged by traditional platforms.

The YZY Card is a debit card that can be used globally with YZY and USDC. Kanye also plans to support users in purchasing Yeezy brand clothing using USDC or YZY, attempting to create practical use cases for the token.

06 From Resistance to Embrace: Kanye's Contradictory Attitude Towards Cryptocurrency

Kanye's attitude towards cryptocurrency has undergone a significant transformation. In February this year, he publicly stated: 'I will not issue tokens; I only make products, I only do what I love and understand. Token speculation is deceiving fans, just like the hyped sneaker culture.'

At that time, he revealed that he had received a $2 million proposal to promote a RUG pull MEME coin, but he declined the collaboration. However, shortly after, he posted: 'All tokens are fake right now, I will launch next week,' but this tweet was later deleted.

This erratic attitude has sparked widespread criticism from the crypto community. Some KOLs speculate that Kanye's account may have been sold, citing several anomalies, but Kanye denied this.

The frenzy behind YZY coin is a highly centralized power structure. 94% of the tokens are controlled by insiders, with the top four addresses holding over 95% of the supply. Ordinary investors are merely participating in a game with predetermined outcomes.

Now, Kanye's team has launched the Ye Pay payment processor and the YZY Card debit card, attempting to create practical application scenarios for this highly inflated token. However, historically similar celebrity token projects, such as the Argentine President Milei token and Trump's TRUMP coin, have mostly experienced a crash after a surge.

The true value of YZY coin does not lie in blockchain technology or decentralized ideals, but in Kanye's personal star halo—this is a capital game monetized through influence, and you may just be a chip on the table.