YZY Coin Plummets: Kanye's Meme Token Loses 82% in a Week
YZY Coin's Rapid Decline: A Week of Highs and Lows
Investors in Kanye West's YZY meme coin experienced a wild ride, with the token plummeting 82% just a week after its launch. This follows a familiar pattern seen with other celebrity-backed tokens, leaving many investors facing significant losses.
From Boom to Bust: YZY's Price Crash
Riding on Kanye West's name, YZY saw an initial surge, reaching an all-time high (ATH) of $3.16 shortly after launch. This propelled its market capitalization to over $400 million before the swift decline began.
Currently, YZY trades around $0.5554, down 82% from its peak, with a market capitalization of $166.63 million. Trading volume has also decreased to $37.98 million, signaling waning investor interest.
Source: CoinMarketCap, YZY Money Price chart
Crypto analysts had previously warned of this possibility, drawing parallels to other celebrity tokens plagued by insider activity and scams.
Insider Activity Fuels Downtrend
The launch of YZY underscored the difference between hype and reality. Launched on August 21, it quickly gained traction but the initial enthusiasm proved unsustainable.
Reports emerged soon after the launch alleging that insiders controlled 90% of the YZY supply, reportedly pocketing over $24.5 million in profits. Some insiders allegedly had early access to information, providing them with an unfair advantage.
One notable insider is reportedly Hayden Davis, co-founder of the LIBRA project, who allegedly made $12 million, according to a Bubblemaps report. Bubblemaps indicated that Davis's wallet purchased YZY shortly after launch, using multiple exchanges to mask the source of funds.
Source: X, Bubblemaps
Speculation suggests Davis may have been involved in the token's launch, raising concerns among investors due to the collapse of his LIBRA project and allegations of mismanagement. A recent court decision unfroze $57 million USDC linked to Davis and Ben Chow, which may have been used to fund YZY purchases.
A TRUMP token insider was also linked to YZY purchases. This activity contributed to the 82% crash, benefiting insiders at the expense of other investors.
Instagram Hack and Fake Token Scam Add to Investor Woes
Kanye West announced on August 26 that his Instagram account had been hacked. The hacked account followed a fake token, 'yzytoken', a significant event given that he only followed one account previously—his wife, Bianca Censori.
Source: X, Kanye West
The addition of the fake 'yzytoken' account briefly pumped the token to a $7 million market cap before crashing to $160,000, causing considerable confusion.
These incidents, including insider activity and scams, have left investors disappointed. Experts suggest YZY is following a similar trajectory to other celebrity meme coins, like those associated with Kim Kardashian and Donald Trump, characterized by an initial pump followed by a rapid collapse.