Million-Dollar Gains for Insiders as Ye, Previously Known as Kanye West, ‘Allegedly’ Launches YZY Token
The YZY token, associated with Ye, skyrocketed at its debut but controversies over insider trading have emerged.
Key Highlights:
- YZY Money, a Solana-based memecoin linked to Ye, saw massive initial gains yet faced scrutiny over possible insider trading.
- The token’s price surged almost 6,800% before dropping back below $1, illustrating the volatile nature of Solana’s memecoins.
- On-chain data indicated insider access and substantial profits for early investors, sparking concerns about the equity of its launch.
YZY Money debuted on Thursday with explosive gains but was quickly mired in controversy. Ye’s social media posted about the token’s introduction, prompting suspicion of account compromise. A subsequent video appeared, showing Ye discussing the token; it’s uncertain if he was genuinely present or simply an AI-generated avatar.
“The token briefly touched $3.16 in early trading—an enormous rise of nearly 6,800% from its starting price.”
In the initial trading, the token achieved a staggering market cap, reportedly reaching $3 billion. Behind the hype lies the YZY ecosystem, pitched by Ye’s team, which includes YZY tokens, a Ye Pay transaction processor, and a YZY Card for global spending.
The structure of YZY was first disclosed by CoinDesk in February, revealing that 70% of the supply was earmarked for Ye, with just 10% for liquidity and 20% reserved for public sale. Concerns about disproportionate allocations have been raised, similar to those tied to former President Trump’s TRUMP token.
Observers have pointed out that such insider-heavy distributions put retail investors at high risk, especially with a single-sided liquidity pool. Analysts discovered a particular wallet that had knowledge of the contract address ahead of time, indicating potential ahead-of-time access for insiders.
The excitement around YZY exemplifies the speculative nature of Solana’s memecoins, although it’s currently valued near $1, resulting in substantial losses for some initial buyers.
