YZY Token Hits $3B Before Crashing on Centralization Concerns

Rapper Kanye West, who now goes by Ye, entered the cryptocurrency market with a splash after unveiling his YZY token on Solana. Within 40 minutes of its launch, the token briefly reached a market capitalization of $3 billion. But momentum soon died away when news leaked out about insider control and suspect trading practices, arousing suspicion amongst traders and analysts.

Rapid Rise and Sharp Pullback

West promoted the token through his Yeezy Money website, framing it as the foundation of a new blockchain-driven financial system. The token gained traction at a blistering pace, attracting the interest of both retail and whale investors, some of whom made massive movements with it. However, the token capitalization decreased to the amount of around $1.05 billion a little later, illustrating the fluctuating nature of celebrity-endorsed digital currencies.

Despite warnings in the fine print about the possibility of complete loss, investors rushed in. Some traders cited comparisons to the TRUMP memecoin, which quadrupled in value within 28 hours earlier this year. Leveraged trader James Wynn highlighted the appeal of liquidity and short-term gains, while BitMEX co-founder Arthur Hayes was also reported to have bought in.

Insider Control Raises Red Flags

Concerns escalated when analytics platforms revealed how concentrated the token’s supply was. Conor Grogan of Coinbase noted that insiders controlled roughly 94% of the circulating supply, with one multisig wallet alone holding 87% before redistribution. This level of concentration heightened fears of market manipulation.

Lookonchain further reported that the liquidity pool only contained YZY tokens, meaning developers could adjust liquidity at will. That structure left buyers exposed to sudden dumps. Additionally, several insiders reaped multimillion-dollar profits in the first hour by exploiting priority fees and early access.

Onchain Lens observed that one early participant accumulated more than $6 million in profits at the peak. Meanwhile, another insider mistakenly bought a spoof token and lost $710,000, though they later recovered by switching to the official version.

Broader Concerns About Celebrity Tokens

The YZY episode adds to growing skepticism about tokens promoted by celebrities and politicians. Earlier this year, Argentina’s President Javier Milei briefly endorsed the LIBRA token before retracting support, leading to a crash. Likewise, Donald Trump’s token drew controversy despite posting massive short-term gains.