Kanye’s YZY Coin Skyrockets to $3B, Then Crashes Overnight

Key Insights

• YZY surged to $3B market cap before collapsing under $1, with $386M in trading volume.
• Reports show 90% of YZY supply concentrated in six wallets, raising strong insider activity concerns.
• Traders exploited volatility, with one short gaining $202K while longs lost over $159K quickly.

Kanye West, legally known as Ye, launched the YZY meme coin on Solana this week. Within hours of release, the token surged to a market cap near $3 billion as trading volume spiked to $386 million. YZY touched an all-time high of $3.16 before dropping sharply. By the end of its first day, the token had fallen below $1.00, briefly reaching $0.91.

Charts from trading platforms showed steep red candles after the peak, reflecting heavy selling pressure. At press time, YZY’s market capitalization was estimated at $349 million, far from its launch peak. The asset lost more than 54% in the last 24 hours, with hourly price swings of up to 31%.

Insider Activity and Concentration Concerns

Reports of insider activity have raised questions about the token’s structure. Journalist Colin Wu pointed to GMGN data suggesting that 90% of the supply is concentrated in just six wallets. Blockchain trackers also noted unusual liquidity pool setups, drawing comparisons to earlier cases such as the Libra coin event.

On-chain analyst Lookonchain stated that one insider “flipped $450,000 worth of USDC into $3.37 million within hours,” fueling doubts over fair distribution. Community voices expressed concern that concentrated control and fast insider exits may have accelerated the collapse.

Exchange Listings and New Products

Despite the volatility, YZY secured quick listings on platforms including CoinMarketCap and Bitget. The official launch also introduced Ye Pay, a crypto payment processor, and the YZY Card, a debit solution aimed at enabling everyday transactions with YZY and USDC.

The token’s website indicated a supply breakdown with 70% allocated to Yeezy Investments LLC, 20% available to public buyers, and 10% set aside for liquidity. Vesting was reported to be handled by Jupiter Lock contracts. Supporters of the project pointed to these developments as signs of broader utility beyond trading.

Market Reactions and Trading Activity

Market sentiment remains divided. Crypto trader Defi Mochi said YZY’s fully diluted valuation of $2–$3 billion was “bad risk-reward,” adding that its timing coincided with unfrozen Libra funds. CryptoQuant CEO Ki Young Ju compared the token’s trajectory to the Official Trump token, which dropped 88% after launch, warning YZY may face “a similar path.”

Traders reacted quickly to the swings. Spot On Chain reported one Hyperliquid trader gained $202,000 by shorting YZY with leverage. Another attempted repeated long positions and recorded over $159,000 in losses. The combination of extreme volatility, concentrated supply, and insider profit-taking has left the token under close watch as trading continues.