Kanye West’s Yzy Memecoin Plunges, Raising Insider Trading Concerns
The Yzy Memecoin, introduced by Kanye West on August 21 as part of the “Yeezy Money” ecosystem on Solana (SOL), has lost a staggering 81% of its value since its peak, leaving tens of thousands of retail investors with significant losses. In contrast, a handful of wallets have made oversized profits, sparking allegations of insider trading and manipulation.
Market Performance and Wallet Analysis
At the time of writing, Yzy is trading at $0.55, with a market capitalization of $71.6 million. According to data from BIFOLSPS, over 50,000 wallets have lost money, with 51,862 wallets losing between $1 and $1,000, and 5,269 wallets losing between $1,000 and $10,000. A further 1,025 wallets have lost between $10,000 and $100,000, and 108 wallets have lost between $100,000 and $1 million. In contrast, only 11 wallets have made over $1 million.
Concerns Over Insider Trading and Tokenomics
The uneven distribution of profits has fueled concerns over insider trading and manipulation. Analysts have expressed concerns over Yzy’s tokenomics, citing that liquidity pools were set up in a way that allows developers to manipulate the price. Furthermore, 70-94% of the supply is still controlled by Yeezy Investments LLC insiders. These concerns are exacerbated by the fact that West had previously called Memecoins “hype-driven scams” in February, only to launch his own Memecoin later.
A Familiar Pattern in Celebrity-Backed Memecoins
The quick rise and fall of Yzy follows a familiar pattern in celebrity-backed Memecoins. These tokens often generate significant hype and retail interest, only to result in losses for the majority of owners. The lack of response from West and his team to concerns over insider trading and tokenomics has only added to the controversy. As the cryptocurrency community continues to grapple with these issues, it remains to be seen how Yzy’s story will unfold.
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