Kanye West’s YZY Coin Sparks Controversy: Insiders Profit, Fans Lose
Kanye West – The highly publicized launch of Kanye West’s YZY memecoin, built on Solana, has left most investors facing heavy losses. According to blockchain analytics platform Bubblemaps, a staggering 73.8% of wallets that traded YZY are now underwater. Out of 70,201 wallets, more than 51,862 addresses lost money, with a combined deficit of $74.8 million. Alarmingly, 1,025 wallets lost over $10,000 each, showing the scale of the damage.
On the flip side, 18,333 wallets did manage to secure profits totaling $66.6 million. However, Bubblemaps noted that 86% of these winning wallets earned less than $1,000, while nearly 30% of all profits were concentrated in just 11 wallets.
Token Crashed Hours After Launch
West officially launched YZY (Yeezy Money) last Wednesday, aggressively promoting it on social media and his official website. The token promised to give users financial freedom from centralized systems. Yet, only hours after its debut, YZY’s value crashed nearly 70%, raising red flags across the crypto community.
Investigators accused insiders of manipulating the market through sniping, a tactic where automated bots scoop up massive portions of a token’s early supply. Bubblemaps alleged that a pseudonymous trader known as “Naseem”, already infamous for making $100 million on Donald Trump’s memecoin, was the first investor in YZY. Another figure, Hayden Davis, allegedly earned $12 million from the same strategy.
Community Calls Out Repeated Scams
Bubblemaps condemned the incident, warning that the same individuals are exploiting high-profile token launches repeatedly:
“The playbook is simple: infiltrate big launches, get in early, and extract millions. It’s happening in plain sight, and no one is stopping it.”
Ironically, Kanye West had previously dismissed the idea of launching his own coin, criticizing memecoins for “preying on fans with hype.” The aftermath of YZY’s debut appears to prove his earlier skepticism right.
