Kanye West’s YZY Coin Crashes 75% After Launch—Insiders Take Millions

Kanye West’s newly launched meme token lost three-quarters of its value as questions over insider activity have shaken investor confidence.

The American rapper and fashion mogul, now legally known as Ye, launched his meme-inspired coin, YZY Money. The token, deployed on the Solana blockchain, was unveiled on Thursday when West shared the contract address and official website on his X account.

In his post, West described the project as “a new economy, built on-chain”. He framed YZY as a digital asset and cornerstone of a broader financial ecosystem.

The first is YZY Pay, a blockchain-powered payment processor that aims to allow seamless crypto transactions. The second is the YZY Card, a debit card connected to YZY balances. It is designed to bring token utility directly into everyday spending.

The website promotes YZY as a project that merges culture, finance, and technology. However, buried in the fine print are cautionary notes, warning users about the “potential for complete loss” when investing in digital assets. It also states that the token is unavailable to users in certain restricted regions.

The Crash: From $3 Billion to $773 Million

Despite its dramatic entry, YZY couldn’t sustain momentum. Within hours of the launch, the coin’s value began to drop sharply. By the following day, its market capitalization had fallen to $773 million, a loss of more than 75%.

Such volatility is not unusual in the world of meme coins. However, the scale and speed of the decline raised eyebrows, especially given West’s direct involvement and the promotional campaign that surrounded the launch.

Insider Trading Allegations

The rapid decline coincided with allegations of insider activity. Conor Grogan, a director at Coinbase, highlighted that at the time of its launch, insiders possessed over 94% of the YZY tokens. Alarmingly, one multisig wallet alone held 87% of the total supply before the tokens were spread across several other wallets.

This raised suspicions that insiders or developers could manipulate liquidity and potentially offload large amounts of YZY onto unsuspecting retail buyers. On-chain observers noted that the liquidity pool contained only YZY tokens without balancing assets. This setup allowed developers to adjust or withdraw liquidity at any time.

Such practices have become a recurring concern in celebrity crypto projects, where token supply concentration often creates opportunities for early insiders at the expense of latecomers.

Big Winners and Painful Losses

Despite the risks, the coin’s launch created huge opportunities for speculative traders. One investor mistakenly bought the wrong token and lost $710,000. However, he later recovered his losses after switching to the correct YZY contract.

Another user reportedly made $3.4 million in profit. To secure their early buy, they paid $24,000 in Solana priority fees, ensuring the transaction was confirmed ahead of others.

According to Onchain Lens, one early buyer was sitting on nearly $6 million in profits at the token’s peak.

These stories of substantial gains and losses highlight the lottery-like nature of memecoin trading. In such a market, timing often plays a bigger role in determining outcomes than the underlying fundamentals.

Celebrity Traders and Whales Show Interest

While some retail investors expressed frustration over the price drop, several high-profile traders showed confidence in the token.

Leverage trader James Wynn revealed that he invested after a 60% pullback, arguing that YZY’s liquidity and volume would attract whales. He compared the situation to U.S. President Donald Trump’s TRUMP token, which saw its value quadruple within just over a day of its launch. Wynn suggested YZY could follow a similar trajectory, at least in the short term.

Meanwhile, a tweet from Arthur Hayes, co-founder of crypto exchange BitMEX, signaled that he had bought YZY. This move further fueled speculation and attention around the project.

Pls don’t rug me @kanyewest !!!$YZY for the win … cause bull market.

Yachtzee pic.twitter.com/16ZruT8WqA

— Arthur Hayes (@CryptoHayes) August 21, 2025

Pattern of Volatility in Celebrity Memecoins

YZY’s rocky debut follows a pattern seen in other celebrity-backed cryptocurrencies. Earlier this year, Argentina’s President Javier Milei briefly mentioned the LIBRA token on X, temporarily boosting its market value to $4 billion. He later removed the post following public criticism, and the token’s price quickly plummeted.

Similarly, Donald Trump introduced the TRUMP token just before his presidential inauguration, and its value fluctuated wildly as traders quickly bought and sold it.

These cases highlight the unpredictable nature of celebrity-driven crypto projects, where star power drives hype. At the same time, insider control and lack of regulation create serious risks for ordinary investors.

What’s Next for YZY?

West, whose current net worth is estimated at $400 million by Forbes, has positioned YZY Money as a bold experiment in financial innovation. Yet, the token’s collapse and allegations of insider dominance may tarnish its credibility.

For now, YZY remains active on Solana, and trading continues with significant volume. Whales and short-term traders still see opportunities. However, analysts caution that without greater transparency, the token may struggle to build long-term trust.