Key Notes
- YZY token surged 6,800% before crashing to $1.15.
- Insiders allegedly controlled 94% of supply.
- Analysts warn of manipulation risks in the liquidity pool.
Popular American hip-hop star Kanye West has launched a new crypto token, YZY, on the Solana
SOL
$184.9
24h volatility:
2.1%
Market cap:
$99.87 B
Vol. 24h:
$6.58 B
blockchain.
The cryptocurrency triggered an immediate frenzy among traders and fans, recording $3 billion in market cap within 40 minutes of the announcement.
The hype was amplified by the rapper’s direct promotion on social media and a $20,000 launch prize pool. At its peak, YZY’s price jumped by 6,800%, hitting $3.16 before profit-taking dragged it down.
West announced that YZY would also be tied to his Yeezy fashion empire, functioning as a payment method on the brand’s online store.
However, 70% of the total supply remains under Ye’s control, raising concerns about centralization and price manipulation.
Insider Concerns
Despite its flashy debut, the YZY launch quickly drew criticism. On-chain analysts revealed that only YZY tokens were added to its liquidity pool, rather than pairing with a stablecoin such as USDC. This setup allows developers to manipulate liquidity and sell tokens at high prices, causing a sudden dump.
Lookonchain reported suspicious activity, including insider wallets buying early and cashing out millions. One insider wallet allegedly turned $450,000 into nearly $1.5 million in profit.
Coinbase director Conor Grogan highlighted that insiders initially controlled 94% of the supply, with a single multisig wallet holding 87% before distribution.
At the time of writing, the cryptocurrency’s market cap is $345 million. The token is currently trading around $1.15, down by over 50% in the past 24 hours.
The Risky World of Celebrity Tokens
The controversy mirrors other celebrity token rugpulls. Earlier this year, Argentina’s President Javier Milei faced backlash after promoting the LIBRA token, which crashed after hitting $4 billion in value.
The U.S. President Donald Trump’s TRUMP
TRUMP
$8.66
24h volatility:
1.4%
Market cap:
$1.73 B
Vol. 24h:
$329.66 M
meme coin also stirred debate earlier this year. The token has lost more than $7 billion in market cap since its peak, currently trading around $8.66.
Popular YouTuber Logan Paul’s CryptoZoo project, launched in 2021, was also branded a rugpull after failing to deliver on its promises.
Under mounting legal pressure, Paul began partial reimbursements in 2024, though lawsuits alleging fraud remain unresolved.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/kanye-west-debuts-yzy-token/
