- Kanye West’s YZY token surged to a $3 billion market cap before rapidly falling 89% to $320 million within 30 minutes.
- Insiders, including a single multisignature wallet, controlled at least 94% of the YZY token supply.
- Crypto analysts reported that insider wallets prepared funds and purchased large amounts of YZY seconds after launch.
- Speculation has arisen about the involvement of LIBRA founder Hayden Davis, though funds remain technically frozen by Circle.
- Some early traders reportedly made significant profits, while many others experienced losses following the token’s sharp decline.
Kanye West’s YZY token, a recently launched cryptocurrency on the Solana Blockchain, reached a market cap of $3 billion shortly after its public launch. Within 30 minutes, the token’s market value fell sharply by 89% to $320 million.
According to Coinbase Director Conor Grogan, insiders owned at least 94% of the YZY token’s total supply. Grogan noted that one multisignature wallet, a secure type of digital wallet that requires multiple approvals for transactions, held 87% of all YZY tokens and distributed them to other wallets soon after the launch.
Crypto analyst Lookonchain said, “Multiple insider wallets prepared funds in advance and immediately bought $YZY.” The token was created three days before its public launch, and the first sharp price increase began almost instantly. On-chain investigator Dethective shared that one party purchased $1.8 million in YZY at launch and transferred these tokens to a treasury wallet that also received over $20 million from two LIBRA token buyers who, according to Dethective, had “inside information.”
Several social media users speculated about the involvement of LIBRA founder Hayden Davis. They pointed to the recent scrapping of a court order, which was believed to have freed up $57 million in the USD Coin (USDC) stablecoin for Davis. However, these funds are still officially frozen by Circle, the company behind USDC.
Further analysis from Lookonchain indicated that the developer behind YZY’s launch has the ability to sell tokens by changing the platform’s liquidity, which is similar to the method seen during the LIBRA token launch. Crypto influencer Gainzsy observed the pump-and-dump nature of the YZY launch, stating that Kanye West only promoted the token on X (formerly Twitter) and not on his larger Instagram following.
One trader, Mikey Shelton, celebrated the early surge in YZY and claimed to earn $160,000 within the first 10 minutes following the token’s debut. Shelton was previously identified as contacting Kanye West about cryptocurrency in the past. In contrast, other traders, including former Bitmex CEO Arthur Hayes, stated they lost money after investing in YZY.
The YZY token is promoted as a way to reduce transaction fees, speed up checkout for Kanye West’s shop, and to offer freedom from centralized control. Disclaimers warn buyers that losses are possible with the highly speculative token.
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