- American Rapper Kanye West launched a memecoin $YZY on Wednesday night.
- The new memecoin pumped to over 2 billion within minutes, triggering a surge in market action.
American Rapper Kanye West, popularly known as Ye, has launched a memecoin called $YZY. The meme token, announced on Wednesday night, sent traders into a frenzy, accumulating a market cap of over $2 billion in just a few minutes of market entrance.
Kanye Launches First Memecoin
Per his usual way, the rapper just made a short, non-wordy social media post of the address of the token and a link to a mini site dedicated to providing surface information on it. About an hour later, he followed up with a four-second video of him saying that “the official Yeezy (YZY) token just dropped.”
There were speculations that the video was fake, but an AI assessment proved the video was most likely real and from him. The questions around the genuineness of the memecoin stem from previous celebrity schemes that ended up becoming scams or outsider infiltration of their social media accounts to promote such schemes.
$YZY launched at around $0.2, but reached an all-time high of over $2.7, pumping its way to $2 billion in market cap within 5 minutes with $120 million in liquidity. Though not unexpected, these massive numbers in record time increased traders’ risks of wagering their funds in the highly volatile token.
Insider Trading on $YZY Uncovered
Lookonchain, a blockchain analytics platform, has been keeping tabs of trading activities on the token. Analytics revealed that only the $YZY memecoin was added to the liquidity pool with no $USDC stablecoin to make a complete liquidity pool, thus leaving holes for liquidity manipulation.
Furthermore, Lookonchain found that due to the setup, the Dev (developer) may sell $YZY by adding or withdrawing liquidity. In other words, the dev could pair their $YZY with a stablecoin, ETH, or BNB, manipulate the price, and sell at will, leading to a massive price dump or soft rug.
In addition, the checks discovered multiple insider trading activity, which suggests these traders had already prepared funds in advance to buy upon launch. One such insider, identified as 6MNWV8 “knew the contract address in advance and tried buying before everyone else.
The above trader spent around 450k $USDC for 1.29M $YZY, when the token was only $0.35 on Wednesday night and sold 1.04M $YZY for $1.39M, and kept the rest of his tokens worth 600k on the DEX, making over $1.5 million overall.
As of this writing, roughly 5 hours after the launch, $YZY traded at $1.2 based on Bitget spot trading charts of the token. Most traders have reported significant losses, with many applying a cautious approach towards the token, considering crashes of previous celebrity tokens.
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