The token YZY launched by Kanye West saw a sudden surge in value, reaching a market capitalization of 3 billion dollars within minutes before plummeting back to 1 dollar.
Ye launches his YZY token on Solana
The new memecoin YZY Money, touted as Ye’s (formerly Kanye West) official token, set Solana ablaze this Thursday. In a matter of minutes, its price skyrocketed by nearly 6,800%, peaking at 3.16 dollars with a market capitalization of 3 billion dollars before crashing down to 1$. However, behind this frenzy, warning signs abound: ultra-concentrated distribution, overly-empowered insiders, and a one-way liquidity setup leaving small investors vulnerable.
An architecture tailored for Ye
Since February, the plan was apparent: 70% of the supply reserved for Ye, 10% for liquidity, and only 20% for the public. A scheme reminiscent of the TRUMP token, with reports suggesting Ye negotiated an even more skewed initial share (80% for him). The team is promoting the idea of a YZY ecosystem with a bank card, payment processor, and supposed utility surrounding USDC. However, for many, it appears more like a pretext than a genuine innovation.
The bubble map of $YZY mostly MATCHES the distribution on Kanye’s website. Source
Insiders: the real jackpot
The on-chain data speaks volumes. An address identified by Lookonchain, 6MNWV8, had knowledge of the contract address over a day before the launch. As a result, 450,000 USDC invested, generating profits of 1.5 million within hours, and holding over 600,000 dollars worth of YZY. Another investor contributed 12,170 SOL (2.28 million dollars) to walk away with a position valued at 8.3 million today. While these whales amass millions, late buyers were left high and dry: one wallet lost nearly 500,000 dollars in less than two hours, selling at a loss.
A special liquidity model
The technical choice further raises suspicions. Only YZY tokens were deposited into the pool, without USDC for liquidity. This setup allows developers or large holders to manipulate liquidity by adding or removing tokens to cash in on their gains, similar to the scandal of the LIBRA token backed by Milei in Argentina. In other words, insiders hold all the cards, while small holders bear the brunt of volatility.
Solana, land of speculative memecoins
This episode confirms a prevailing trend: on Solana, memecoins skyrocket quickly, but wealth redistribution remains skewed. Behind the facade of “mainstream crypto” with celebrities on display, the same mechanisms emerge: pump-and-dump, well-equipped insiders, and unsuspecting individuals trapped.
At the time of writing, YZY has already fallen back to around 1 dollar. The story could be summed up as follows: Ye (and his inner circle) feast, early buyers emerge victorious, and the majority of fans foot the bill. A bitter lesson reminding us that in the memecoin jungle, access to insiders matters more than celebrity tweets.
