Rapper Kanye West's newly launched YZY token saw its market value soar to $3 billion just 40 minutes after its debut on Solana, but concerns over insider trading have reduced most of the gains.
On Thursday, West, officially known as Ye, shared the contract address and the Yeezy Money website, which he described as "a new economy built on the chain."
The website describes YZY as the currency powering transactions within "YZY MONEY," a "financial system built on crypto rails."
In a subsequent post, West stated, "The official YZY token has just been released."
Within 40 minutes, the market value of the YZY token reached $3 billion, but according to data analytics platform Nansen, it had dropped to about $1.05 billion by the time of publication.
In the fine print of the website's terms, it mentions that the token is not offered to entities in restricted jurisdictions. It also warns users of the risks associated with digital assets, including the "possibility of total loss."
A user shared a screenshot showing that West had warned users in February that someone had asked him to promote a fake currency for $2 million, which would involve his accounts being hacked after promoting the token.
As of the time of publication, Forbes estimates West's net worth at $400 million.
The Yeezy Money website states that it has deployed 25 contract addresses for the YZY token, randomly selecting one as the official token to prevent token snipers.
However, the launch of the YZY token has raised suspicions of insider trading, similar to other celebrity meme coins.
On-chain analysis platform Lookonchain noted that only the YZY token was added to the liquidity pool, meaning developers could sell the token at any time by modifying the pool's liquidity.
Coinbase director Conor Grogan pointed out that at least 94% of the token supply is held by insiders, with one multi-signature wallet holding 87% of the supply before it was distributed to multiple wallets.
Lookonchain reported that a user who allegedly had insider information mistakenly bought the wrong token, resulting in a loss of $710,000; however, they later recovered all losses by purchasing the correct token.
Another user made a profit of $3.4 million and paid $24,000 in priority fees to the Solana network to ensure their transaction was processed quickly.
Onchain Lens also noted that an entity that purchased the token early made a profit of $6 million when the token peaked.
Despite the concerns, several well-known cryptocurrency traders stated they had purchased the token.
Leverage trader James Wynn mentioned that whales might be attracted to the token due to its liquidity and trading volume.
Wynn said this is a short-term investment, and he hopes to double or quadruple the amount invested in the token. The trader cited the Trump-themed meme coin that quadrupled in value within 28 hours as a reason for investment.
"Buy $YZY at a 60% pullback. $TRUMP went from $4 billion to $15 billion in 28 hours. 4x," Wynn mentioned.
BitMEX co-founder Arthur also appears to have purchased the token.
Celebrity meme coins have gained a lot of attention this year, with Argentine President Javier Milei's support for the LIBRA token seen as one of the more controversial events.
In February, the Argentine president shared the LIBRA token on X, causing its market value to soar to $4 billion; however, after facing strong community backlash, he deleted the post a few hours later, leading to a crash in the token's price.
This incident sparked outrage, with many calling for strict restrictions on meme coins promoted by politicians.
Earlier this year, U.S. President Trump launched the TRUMP meme coin before his presidential inauguration.
Related: BNB treasury company Windtree's stock plummets 77% after Nasdaq delisting notice.
Original article: “Kanye West launches YZY meme coin, market cap hits $3 billion then crashes amid insider concerns”
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