Before the launch, rumors began circulating in the cryptocurrency world about Kanye West (Ye) launching a cryptocurrency. More specifically, reports emerged about the launch of the meme token YZY, whose supposed structure generated skepticism: 70% of the supply would be allocated to Ye, 20% to investors, and 10% reserved for liquidity.
Before Kanye could reach the launch, scammers created multiple fake YZY tokens on Pump.Fun, many of which ended up in a scandal. Notably, days earlier, Ye himself claimed that "coins exploit fans with their enthusiasm," but ultimately the launch took place on August 21.
Kanye's X account made the official announcement and introduced "YZY Money," calling it the new blockchain-based company. Reports indicate that the cryptocurrency is designed to be compatible with YePay and YZY cards, and that the ecosystem they are creating will challenge traditional finance, reduce transaction fees, and much more.
However, unusual trading activity and insider information caused chaos in just 24 hours after the launch.
Experts note that, 40 minutes after the launch of the YZY Money token, its market capitalization soared to $3 billion, a significant milestone. However, it soon collapsed due to profit-taking by investors and insider trading activity. Within hours, it plummeted two-thirds of its initial price, leaving hundreds of investors with losses.
Experts like Arthur Hayes have commented on Kanye's token launch, adding: "Please, don't bother me." Many others had similar concerns, considering the celebrity cryptocurrency theft cases, including Trump's TRUMP.
Experts also point out that many of these informants were linked to LIBRA and the TRUMP token. Bubblemaps adds that the first buyer of the YZY token was Naseem, the operator who made $100 million with TRUMP, raising suspicions about his early purchases. Other parties interacted similarly with the contract address even before its publication.
While the sniper benefited, as a single wallet controlled 87% of the supply, and collectively held 94%, regular investors struggled. Lookonchain observed that one wallet lost $1.8 million, while another lost $500,000 in 2 hours, and the list goes on.
Concern grew even more when people noticed that Ye and his team were celebrating internal movements.
In just 24 hours, Kanye's token went from an all-time high of $3.16 to an all-time low of $0.7713. Currently, it is trading at $0.7722 with a market capitalization of $231.66 million. It is worth noting that its trading volume has decreased by 85%, down to $147.78 million, demonstrating a decline in investor interest due to insider trading activity and the price drop.
