Key Takeaways:
-
Kanye West’s YZY meme coin launched on Aug. 21 and quickly hit a $3 billion market cap, but the hype was short-lived — the token has since dropped nearly 80%, with most traders now in the red.
-
Over 60% of YZY traders lost money, according to on-chain data. One address recorded a loss of more than $1 million, while a small number of insiders made massive profits.
-
The first major YZY buyer was linked to a known sniper and suspected insider named Naseem, who has been connected to other controversial meme coins like TRUMP and LIBRA.
Kanye West’s foray into crypto made headlines — and then heartbreaks. Within hours of launch, the YZY meme coin soared to nearly $400 million. Now it’s crashing hard, traders are bleeding, and questions are swirling about insider games.
When Kanye West launched his own meme coin on Aug. 21, expectations were sky-high. The token, YZY, briefly surged in price, reaching nearly $3 billion in market cap. But now, just days later, its value has collapsed by almost 80%. The chart is covered in red, and most traders are underwater.
According to data shared by analyst Defioasis on X (formerly Twitter), just 38% of the 30,884 wallets that both bought and sold YZY made any profit. Most of those who gained earned under $500. Only 406 wallets cleared more than $10,000. Meanwhile, over 60% of participants lost money, and nearly 15,000 wallets are down between $0 and $500.
One trader has already realized a loss of over $1 million.
Source: post by Defioasis.eth on X
At the same time, some wallets saw massive profits, raising suspicions of insider activity. Bubblemaps found that one of the very first wallets to buy YZY belonged to Naseem, a trader previously linked to early buys of Official Trump (TRUMP) and Libra (LIBRA) meme coins.
He bought $250,000 worth of YZY on launch day, turned it into $1.4 million, and already cashed out $800,000.
Naseem has a personal account with nearly 30,000 followers. His last post was from Feb. 1, just before the LIBRA scandal involving Argentine President Javier Milei. That token ended in massive losses for most traders and was widely labeled a scam.
Another wallet linked to Hayden Davis, one of the LIBRA token creators, was also spotted buying YZY.
Kanye West’s YZY meme coin had been anticipated for months amid various rumors. But history suggests celebrity-backed coins rarely end well. Most have lost close to 100 percent of their value.
Still, reputations of the celebrities themselves often remain untouched. Traders, meanwhile, continue to chase hype despite repeated losses. YZY appears to be the latest example.