Rapper Kanye West’s YZY token skyrocketed on launch, reaching a $3 billion market cap in under an hour. But questions about insider trading and liquidity control quickly triggered a massive pullback.
YZY Token Surges to $3 Billion in Minutes
Launched on Solana, the YZY token—marketed as part of West’s “Yeezy Money” project—hit a $3 billion valuation just 40 minutes after launch. West, who now officially goes by Ye, promoted the token on X, describing it as “A NEW ECONOMY, BUILT ON CHAIN.”
The Yeezy Money website claims the token is designed to power transactions within a “financial system built on crypto rails.” However, within hours, its market cap plunged to around $1.05 billion, according to analytics platform Nansen.
The website’s fine print highlights the risks of digital assets, warning of a “potential for complete loss.” It also states the token is unavailable to users in restricted jurisdictions.
Allegations of Insider Trading
Despite being marketed as transparent, blockchain analysts spotted red flags in the YZY token launch.
Onchain data from Lookonchain revealed that only YZY tokens were added to the liquidity pool, meaning developers could pull liquidity at any moment. Coinbase director Conor Grogan added that insiders held at least 94% of the total supply, with one multisig wallet alone controlling 87% before redistribution.
Reports surfaced of insiders profiting millions. One trader who initially bought the wrong token lost $710,000 but later recovered after switching to YZY. Another user made $3.4 million, paying $24,000 in priority fees to secure their trade. Onchain Lens also noted an early buyer sitting on $6 million in unrealized profits at the token’s peak.
Crypto Whales and Traders Still Buying
Despite concerns, several high-profile traders are betting on YZY. Leverage trader James Wynn said whales are likely to be attracted by the token’s liquidity and volume.
Wynn revealed he bought YZY after a 60% pullback, citing Donald Trump’s TRUMP memecoin—which quadrupled in just 28 hours—as his reason for taking the gamble. “Aped $YZY on a 60% pull back. $TRUMP ran from $4bn to $15bn in 28 hours. 4x,” he posted.
BitMEX co-founder Arthur Hayes also appeared to purchase YZY, signaling that despite risks, big players are watching closely.
The Risky Trend of Celebrity Memecoins
The YZY token follows a growing trend of celebrity-backed cryptocurrencies, many of which have sparked controversy.
Earlier this year, Donald Trump launched his TRUMP memecoin ahead of his presidential inauguration, which surged before facing sharp corrections. In Argentina, President Javier Milei promoted the LIBRA token on X, briefly pushing its market cap to $4 billion before deleting the post amid backlash.
These incidents have fueled calls for stricter regulation of celebrity-driven tokens, which often see explosive pumps followed by rapid crashes, leaving retail traders at risk.
Kanye West’s Net Worth vs. YZY Token Hype
As of writing, Kanye West’s net worth stands at around $400 million, according to Forbes. Whether the YZY token becomes a long-term project or another volatile celebrity memecoin remains to be seen—but its $3 billion launch frenzy has already cemented it as one of 2025’s most talked-about crypto events.
