In a controversial move, American rapper Kanye West, known as "Ye," launched his meme coin YZY on the Solana network, recording a massive market value of $3 billion in just 40 minutes, before quickly retreating to around $1.05 billion amid increasing fears of insider trading.
West posted on platform X a link to the smart contract and the Yeezy Money project site, describing the currency as "the official currency of the new economy built on blockchain."
The site clarified that the YZY coin will be used as a means of payment within the YZY MONEY financial system, but it included warnings about the risks associated with cryptocurrencies, including the possibility of losing all capital.
Allegations of insider trading
The analytical platform Lookonchain indicated that the liquidity for the currency was added through YZY tokens themselves, giving developers the ability to control the sale whenever they wished. A manager at Coinbase revealed that about 94% of the supply was initially owned by insiders, with one multi-signature wallet holding 87% before distribution.
Some investors incurred significant losses; one bought a wrong contract and lost $710,000, but later managed to recover his losses. In contrast, another investor made a profit of $3.4 million after paying a priority fee of $24,000 to expedite his transactions on the Solana network. Onchain Lens data also indicated that one of the early investors exited with profits of nearly $6 million at the price peak.
Despite the controversy… whales are getting involved
The currency has attracted the attention of prominent traders, as James Wynn – known for trading with leverage – announced that he bought YZY after its 60% drop, considering it a "short-term game" similar to the rise of the TRUMP coin launched by former US President Donald Trump, which jumped from $4 to $15 billion in just 28 hours.
Market indicators also showed that Arthur Hayes, co-founder of BitMEX, entered as an investor in the currency.
Meme coins between success and collapse
The launch of YZY recalls the wave of meme coins launched by celebrities and politicians during 2024. In February, the LIBRA coin jumped to $4 billion after promotion by Argentine President Javier Milei, but he quickly deleted his post following widespread criticism, leading to its collapse.
Similarly, the TRUMP coin also experienced a rocket-like rise after its launch, confirming that these projects, despite the significant controversy surrounding them, still attract massive liquidity in a record time.
Despite the recent decline, the launch of YZY remains one of the fastest and most controversial launches in the cryptocurrency market, especially with ongoing questions about the role of insiders and the level of risks that could threaten new investors.
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