By Key Points
- Kanye West’s YZY Coin launched on Solana with a $3B market cap peak
- Insiders allegedly profited millions using prior knowledge
- 92% of token supply is held by top 10 wallets
- Fake YZY tokens and questionable liquidity spark caution
YZY Coin, the meme coin launched by Kanye West (Ye), stormed the Solana blockchain this week, reaching a staggering $3 billion market cap shortly after going live.
The launch wasn’t just another meme coin drop; this one had Ye’s direct involvement.
YZY Token Launch. Source: X/kanyewest – Techtoken
The rollout was backed by a promo video and an official website, which outlines the broader YZY Money ecosystem, including a crypto payment processor (Ye Pay) and a YZY Card that supports spending in both YZY and USDC.
The coin’s unique “YZYNOMICS” are structured to give the illusion of fair distribution:
-
20% of tokens go to the public
-
10% is reserved for liquidity
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70% is controlled by Yeezy Investments LLC, Ye’s company, with vesting periods ranging from 3 to 12 months
The project also added a layer of randomness by deploying 25 separate contract addresses, picking one at launch as the “official” token. This move was meant to protect against bots and speculative trading, though in practice, it didn’t stop manipulation.
Despite the decentralization message, Solscan data revealed that the top 10 wallets hold over 92.23% of the total token supply, raising major concerns about true ownership and control.
Token centralization has also been a red flag in other recent cases, like the 51% attack risks in Bitcoin mining that raise serious concerns about control.
Insiders Bag Millions as Traders Cry Foul
What initially looked like a community-driven launch quickly drew fire from the crypto community due to allegations of insider trading and early access.
According to blockchain tracking firm Lookonchain, several wallets were caught preparing funds and interacting with the contract before the official announcement.
An insider spent 450K $USDC to buy 1.89M $YZY at $0.24 via 2 wallets, then sold 1.59M $YZY for 3.37M $USDC at $2.12.
He still holds 303,425 $YZY($510K), with a profit of over $3.4M (+760%).
To ensure he got in first, one wallet even paid 129 $SOL($24K) in priority fees.… pic.twitter.com/HaUeEjcmSC
— Lookonchain (@lookonchain) August 21, 2025
One such wallet, 6MNWV8, spent 450,611 USDC to buy 1.29M YZY at $0.35, then sold 1.04M YZY for $1.39 million, banking a profit of over $1.5 million in under 24 hours.
ye(@kanyewest) launched the $YZY token. Note:
Only $YZY was added to the liquidity pool with no $USDC.
Dev may sell $YZY by adding/removing liquidity, similar to $LIBRA.Multiple insider wallets prepared funds in advance and immediately bought $YZY.
Insider wallet 6MNWV8 knew… pic.twitter.com/qv7nsx0R4J
— Lookonchain (@lookonchain) August 21, 2025
Another wallet lost $710,000 by mistakenly buying a fake YZY token, only to later spend 761,000 USDC on the real one, miraculously recovering losses by making the same amount in gains.
This guy clearly had insider info about @kanyewest launching a token—but only part of it.
He bought the wrong $YZY and lost $710K!
40 minutes ago, he spent 761K $USDC on the real $YZY, and now sits on a profit of over $710K — making back his loss.https://t.co/3zGPtTxFx2 pic.twitter.com/ppvJThCiDw
— Lookonchain (@lookonchain) August 21, 2025
A different insider dropped 450K USDC across two wallets to scoop up 1.89 million YZY at $0.24, selling most for $3.37 million, leaving them with a remaining stash worth $510,000 and total profits exceeding $3.4 million. One of these wallets even paid 129 SOL ($24K) just to ensure faster transaction speed.
Ye (@kanyewest) launched his own $YZY token on @solana.
A whale spent 12,170 $SOL, worth $2.28M, to buy 2.67M $YZY and transferred it to another wallet.
Currently, these $YZY are valued at $8.29M, resulting in a profit of $6M.
Note: The liquidity pool was populated solely with… pic.twitter.com/Ma3ViJwUgi
— Onchain Lens (@OnchainLens) August 21, 2025
Adding to the drama, a whale investor spent 12,170 SOL (~$2.28M) to purchase 2.67 million YZY, which are now valued at $8.29 million, resulting in a jaw-dropping $6 million profit.
🚨KANYE CRYPTO TOKEN LAUNCH $YZY RUMORED TO BE A PRESALE FILLED WITH INFLUENCERS AND INSIDERS🚨
ONCE AGAIN RETAIL WILL BE STUCK HOLDING THE BAG WHILE INSIDERS CASH OUT MILLIONS. STOP SUPPORTING CELEBRITY TOKEN LAUNCHES THEY ARE DESTROYING CRYPTO pic.twitter.com/RSGmsxeWkO
— scooter (@imperooterxbt) August 21, 2025
These numbers don’t lie; while many fans were still figuring out how to buy, insiders were already cashing out. This situation is reminiscent of AI-based Ponzi crypto scams that manipulate both hype and access for early profit.
Centralization and Fake Tokens Raise Major Red Flags
Beyond the insider allegations, there’s another issue gaining attention: centralization. Despite branding itself as a decentralized meme coin, the token’s supply concentration tells another story.
With over 92% of tokens held by just 10 wallets, the market is at serious risk of being manipulated by a handful of actors.
ye(@kanyewest) launched the $YZY token. Note:
Only $YZY was added to the liquidity pool with no $USDC.
Dev may sell $YZY by adding/removing liquidity, similar to $LIBRA.Multiple insider wallets prepared funds in advance and immediately bought $YZY.
Insider wallet 6MNWV8 knew… pic.twitter.com/qv7nsx0R4J
— Lookonchain (@lookonchain) August 21, 2025
Then there’s the issue of liquidity. Lookonchain and other analysts have flagged that the liquidity pool consists solely of YZY tokens. This gives developers the power to manipulate prices by injecting or removing liquidity, similar to what happened with previously failed tokens like LIBRA.
The Solana community is also dealing with an influx of fake YZY tokens created to exploit the hype.
Bubblemaps reported a surge in scam coins using the YZY name. One investor reportedly lost over $700,000 by mistakenly purchasing a counterfeit version.
Kanye West just followed @YZY_MNY
THERE IS NO CA
But scammers are already bundling fake $YZY tokens
Don’t fall for it pic.twitter.com/9q0hMn6iac
— Bubblemaps (@bubblemaps) August 19, 2025
These scams are rampant in meme coin culture, but the association with a celebrity like Kanye gives scammers even more leverage to trick retail investors.
It mirrors problems faced by other projects like the PI Hackathon 2025, where early optimism gave way to confusion and backlash due to poor project structure.
Leverage, Hype, and the Fragile Meme Market
Crypto exchange Hyperliquid added another twist by enabling leveraged trading on YZY just hours after launch. Users can now go long or short on YZY with up to 3x leverage, a move that appeals to speculators but increases the risk for retail traders.
The exchange issued a warning:
“Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks.”
Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks for. Exercise control. NFA. https://t.co/N0CE0T3YJr
— Hyperliquid (@HyperliquidX) August 21, 2025
Despite this, many rushed in hoping to ride the volatility. Some succeeded, but others fell victim to the hype cycle, particularly as bullish sentiment in altcoins continues to drive rapid gains and losses in meme-driven markets.
BREAKING:
Kanye West launches the $YZY token.
Market cap rocketed from $200M → $1.88B in under 10 minutes (+881%)
Briefly hit $3B before cooling to $1.6B
This is giving peak bull market vibes. pic.twitter.com/SxE25RKObU
— Milk Road (@MilkRoadDaily) August 21, 2025
Even regulators are taking note. As seen in the SEC’s investigation into ALT5 Sigma, projects that operate in grey areas often face intense scrutiny when things go south.
YZY Token Market Cap. Source: Nansen – Techtoken
As of now, YZY Coin’s market cap sits at $1.37 billion, down from its peak. Whether this is just a celebrity-fueled flash in the pan or the start of something bigger remains uncertain. But what’s clear is this: when it comes to crypto, caution beats hype, every time.
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