YZY Token Crash Devastates Thousands of Traders
The YZY token from Kanye West was launched on Solana on August 21. It surged 1,400% in the first hour. Nonetheless, within a matter of days, the token rapidly collapsed, declining by over 80%.
According to analytics company Bubblemaps, out of 70,200 traders, over 51,800 investors suffered losses, with three traders losing more than $1 million each. So far, only 11 wallets made more than $1 million, while 99 wallets made over $100,000. This stresses the extreme risks of meme tokens endorsed by celebrities with minimal blockchain utility.
Price Plunge and Current Holdings
According to the blockchain intelligence platform Nansen, the YZY token currently trades at about $0.5515, and only 19,531 traders still hold the token. It has dropped far below its all-time high, proving how speculative the token really is.
According to a Cointelegraph report, ex-kickboxer Andrew Tate seemingly lost between $700,000 trying to open a 3x leveraged short on YZY.
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Insiders and Sniping Activity
Bubblemaps also suggested that MELANIA and Libra tokens co-creator Hayden Davies benefited from the launch. Davies allegedly “sniped” the YZY launch and made $12 million.
According to Bubblemaps, early sniper connections originating from blue-chip celebrity tokens consistently profit from launches — usually at the expense of retail investors.
Celebrity Memecoins Remain High-Risk Assets
Most cryptocurrencies endorsed by celebrities do not reach any significant market capitalization, even when they generate retail excitement.
- Over 30 tokens tied to celebrities like 50 Cent, Caitlyn Jenner, Iggy Azalea, and Ronaldinho Gaúcho launched on Solana in June 2024, but are already down by at least 73%.
- In 2024, Andrew Tate endorsed over 10 memecoins built on Solana’s blockchain, most of which lost nearly 99% of their value shortly after launch.
Takeaway: Extreme Volatility in Celebrity-Backed Tokens
The YZY token news shows that just because a celebrity endorses a token doesn’t mean it will make investors rich. Retail traders must be careful, as memecoins remain highly speculative. While a handful of insiders make huge profits, most early investors lose the majority of their money.
