The speculative frenzy around Kanye West’s memecoin, Yeezy Money (YZY), has already claimed its first high-profile casualty.
On-chain data reveals that one crypto trader, identified as wallet 6ZFnRH, lost half a million dollars in less than two hours after misjudging the token’s violent price swings.
The trader initially deployed 1.55 million USDC to purchase 996,453 YZY at an average entry price of $1.56. However, as liquidity thinned and sentiment shifted, YZY dropped below the $1 threshold. The whale capitulated at $1.06, recouping only 1.05 million USDC and locking in a staggering $500,000 loss in record time.
Cryptocurrency traders not concerned by Yeezy Money volatility
The brutal liquidation has not deterred speculators from piling into the coin. Well-known trader Machi Big Brother (@machibigbrother) has revealed a 3x leveraged long position worth 570,000 YZY ($613,800), a bet that the token’s volatility can be exploited for outsized returns.
Kanye West himself has also raised the stakes. Blockchain records show that he injected 30 million YZY (valued at $34 million) into the liquidity pool on Meteora, setting an automated range between $3.1716 and $4.4929.
Once the price crosses the lower bound, West will begin earning fees while gradually selling into USDC. Should YZY break above the upper band, the entire allocation will be sold, effectively realizing $134 million at peak levels.
The combination of whale losses, speculative leverage, and celebrity-backed liquidity has created a perfect storm around YZY. For now, the token has slipped under $1, raising doubts about its sustainability.
Source: https://finbold.com/crypto-trader-lose-500k-in-two-hours-trading-kanye-west-meme-coin/