YZY is a cryptocurrency issued by the famous Hip-Hop artist Ye, which reached a market capitalization of up to 3 billion USD within 40 minutes of launch.
Despite creating a huge buzz, on-chain analysis experts warn of insider trading risks and high volatility, noting that most Tokens are held by the internal team.
MAIN CONTENT
The YZY token reached a market cap of 3 billion USD in 40 minutes but quickly fell sharply.
94% of the Tokens are owned by the internal team, raising questions about insider trading.
Mixed market reactions, with investors making big profits and losing a lot due to confusion.
Is YZY a legitimate cryptocurrency? What do experts say?
YZY was cautiously launched by Ye after denying the promotion of a fake currency worth 2 million USD. However, cryptocurrency experts quickly warned of insider trading risks in this project.
Although co-founder of BitMEX, Arthur Hayes, initially bought YZY as a short-term investment, he soon publicly criticized the Token on social media, expressing doubts about the sustainability of this currency.
“Sorry, next time don't let me trade coins like YZY. I should have stuck to my old strategy.”
Arthur Hayes, co-founder of BitMEX, 2024
This assessment reflects the views of a professional trader who recognizes potential danger signs following the initial hype of YZY.
How do Coinbase experts confirm signs of insider trading with YZY?
Mr. Conor Grogan, director of Coinbase, stated that at least 94% of the total YZY supply is owned by the internal team. An initial multi-signature wallet controlled 87% and then distributed to other wallets, raising concerns about transparency.
Grogan further explained, “There was a purchase transaction of over 3% of the Token amount that was prepared by wallets set up beforehand right when the market opened.” This indicates careful coordination among stakeholders in price manipulation.
In agreement, the blockchain analysis company Lookonchain noted that many internal wallets were financially prepared and bought Tokens immediately, along with knowing the smart contract address before the launch.
“The internal wallet 6MNWV8 knew the contract address in advance and even attempted to buy Tokens before the launch date.”
Lookonchain, on-chain analysis report, 2024
These analyses raise warnings about the risks of insider trading and low transparency during the YZY launch process.
How do traders react to YZY?
Market reactions are very diverse, with some spending up to 24,000 USD in priority fees on Solana to profit 3.4 million USD, while others made 6 million USD at the peak price. However, many investors suffered losses due to mistakenly purchasing the wrong contract, losing about 710,000 USD before they could minimize their losses by buying the correct contract.
This situation clearly illustrates the volatility and high risks associated with YZY, while highlighting the enormous profits the internal team gained during the Token introduction phase.
Frequently Asked Questions
What is YZY and who issued it?
YZY is a Token released by Hip-Hop artist Ye, which attracted significant attention upon its launch in 2024.
Why does YZY raise suspicions about insider trading?
94% of the Token is held by the internal team, along with prior preparations for buying and selling, indicating clear signs of insider trading.
How does the market react to YZY?
Many investors made huge profits, but some lost hundreds of thousands of USD due to confusion and extreme price volatility.
What advice do cryptocurrency experts have about YZY?
Most cautionary recommendations are due to the risks of high volatility and lack of transparency in insider trading.
Is YZY suitable for long-term investment?
With the current volatility and risk levels, long-term investment in YZY is very risky and needs careful consideration.
Source: https://tintucbitcoin.com/arthur-hayes-canh-bao-yzy-token-lua-dao/
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