Over 51,000 traders suffered losses in the YZY token launched by Kanye West, highlighting the risks faced by celebrity tokens with no substantive technological value.
The YZY token surged 1400% in the first hour after launching on the Solana blockchain on August 21, then dropped over 80%. Among the 70,200 traders who invested, 51,800 lost money, including three who lost over $1 million.
Only 11 wallets made profits of over $1 million, and 99 made over $100,000, further demonstrating the financial risks of investing in celebrity tokens.
Additionally, the price of YZY tokens has dropped over 80% from its peak, trading at $0.5515, with only 19,531 holders.
Former kickboxing champion Andrew Tate also attempted to profit from this token. He opened a short position with 3x leverage, resulting in a loss of $700,000.
Related: Crypto whales bought $456 million Ethereum in a 'natural rotation'
Hayden Davis earned $12 million through YZY tokens
After the event, the blockchain platform pointed out potential insider trading related to Hayden Davies. After the judge unfreezes $57.6 million USDC related to the Libra token scandal, Davies regained access to funds and earned $12 million through YZY.
Despite attracting significant retail interest, most celebrity tokens have failed to become large market cap tokens.
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