Kanye’s $3 Billion Crypto Dream Crashes in Hours Amid Insider Trading Claims

• Kanye West’s YZY cryptocurrency achieved $3 billion market cap within 40 minutes on the Solana blockchain before crashing to $1.05 billion.

• Analyst revealed 94% of tokens held by insiders at launch, with a single wallet controlling 87% of the total supply.

Rapper Kanye West has released his YZY cryptocurrency token on the Solana blockchain, with impressive initial results, but then serious problems in the market. The token hit a record high of $3 billion in market capitalization in only 40 minutes after announcing its debut on Thursday. West advertised the release via his X social media platform, posting contract terms and announcing a new economy based on the blockchain, called Yeezy Money.

The entry into cryptocurrency is the latest business venture of the musician, who has already expanded into other business ventures in the music and fashion industries. In the Yeezy Money platform website, West explained that the project was aimed at creating A NEW ECONOMY BUILT ON CHAIN. The value of the token, however, fell sharply to around $1.05 billion as investors began to fear the possibility of market manipulation.

Insider Trading Allegations Cast Shadow Over Launch Success

Crypto analysts soon noticed some suspicious market activities that cast doubts on the proper distribution and trading of the token. Crypto expert found that 94% of the total supply of YZY tokens was in the hands of insiders at launch. A single multisig wallet possessed 87% of the tokens, which were then spread out to a variety of addresses to make the ownership less concentrated.

The liquidity structure of the token was also criticized by Lookonchain, which said that developers maintained too much control over the trading mechanism. Only YZY tokens were introduced into the liquidity pool, which gave developers the opportunity to manipulate the price of tokens by controlling the amount of liquidity. This arrangement allows insiders to sell their holdings at favourable periods and at the expense of ordinary retail investors.

Nevertheless, some of the most well-known traders in cryptocurrencies still bought YZY tokens, seeing the situation as a speculative opportunity in the short term. Leverage trader James Wynn likened the scenario to that of President Trump, whose memecoin had gained four times its value in 28 hours. Even the co-founder of BitMEX, Arthur Hayes, is said to have invested in the controversial token despite the insider trading claims.

Celebrity-promoted cryptocurrency tokens have had a mixed track record in 2024, with Argentine President Javier Milei also having been involved in controversy over LIBRA token promotion. The launch of the YZY token is emblematic of the continuing issues in the memecoin sector in terms of transparency, equitable distribution, and celebrity manipulation of unstable markets.

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