Last updated on September 30th, 2025 at 11:20 am
Quick Breakdown:
- Kanye West’s celebrity backing and a strong marketing push sent YZY’s market cap skyrocketing to $3B within 40 minutes, fueled by FOMO and speculative trading.
- Insider dominance (94% supply held in a few wallets), liquidity manipulation risks, and heavy profit-taking triggered a crash to $1.05B within a day.
- The YZY saga shows that celebrity tokens are highly speculative, without fundamentals, sustainability, or fair tokenomics, hype alone cannot support long-term value.
Kanye West’s foray into crypto turned heads immediately. The YZY token, launched on Solana on August 21, entered the market and exploded immediately. Within 40 minutes of its debut, the celebrity token YZY’s market capitalization surged to an astonishing $3 billion, as traders piled in on the hype of West’s celebrity brand.
Social media buzz and speculative frenzy fueled a rally that seemed unstoppable. But the euphoria was short-lived. The token’s value tumbled, slipping to around $1.05 billion within 24 hours. This whiplash created a textbook example of how meme coins, especially those backed by celebrities, can swing wildly between mania and meltdown in record time.
YZY’s meteoric rise and equally dramatic fall have raised questions about drivers of the surge and crash factors as well as lessons learned.
Drivers of the Surge
When Kanye West speaks, the world listens, and in crypto, that attention translates directly into market action. His decision to launch the YZY token instantly put it in the spotlight, sparking a rush of interest from both crypto enthusiasts and mainstream fans.
For many traders, it wasn’t about fundamentals or utility; it was about being part of the cultural moment. That FOMO drove thousands to buy in almost immediately, amplifying the meteoric rise in market cap.
Strong marketing narrative
The rollout wasn’t just about a token; it came wrapped in a compelling story. Marketed under the “YZY MONEY” banner and promoted as “A NEW ECONOMY, BUILT ON CHAIN”, the project played directly into crypto culture’s obsession with disruption and reinvention.
The branding suggested not just another memecoin, but the beginnings of a celebrity-led financial movement. For early buyers, that narrative was enough to justify big bets, even before any real use cases were defined.
Speculative trading and whale interest
Behind the frenzy, seasoned traders and crypto whales saw opportunity. The enormous liquidity and surging volumes made the celebrity meme coin a prime target for short-term speculation.
Some high-profile traders even announced their buys on social media. Retail investors took cues from these moves, whales took profits on the market volatility, and the cycle accelerated. In those first 40 minutes, YZY became less about Kanye and more about the sheer mechanics of hype-fueled trading.
Why It Plummeted
The first cracks appeared when onchain analysts flagged troubling patterns. Lookonchain revealed that only YZY tokens were added to the liquidity pool, giving developers unchecked power to tweak liquidity and sell whenever they wished.
ye(@kanyewest) launched the $YZY token. Note:
Only $YZY was added to the liquidity pool with no $USDC.
Dev may sell $YZY by adding/removing liquidity, similar to $LIBRA.Multiple insider wallets prepared funds in advance and immediately bought $YZY.
Insider wallet 6MNWV8 knew… pic.twitter.com/qv7nsx0R4J
— Lookonchain (@lookonchain) August 21, 2025
Coinbase’s Conor Grogan added fuel to the fire, noting that 94% of the token supply was insider-held, with one multisig wallet controlling an eye-popping 87% before scattering funds across other wallets.
By my estimation, at least 94% of the new Kanye token is insider owned
-87% of the new Kanye token was owned by a single multisig (now dispersed to multiple wallets)
-3%+ was bought in a single transaction, with size, by assorted (prepared) wallets at market open
-7%+ in LP pic.twitter.com/gokotoI39s— Conor (@jconorgrogan) August 21, 2025
To investors, this screamed rug pull risk. Once whispers of insider dominance spread, confidence evaporated.
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Liquidity pool manipulation
Liquidity is the lifeblood of any token, but in celebrity coin’s case, it became a weapon. Because the liquidity pool contained no stablecoins or external tokens, developers could drain liquidity or manipulate prices at will. For traders, this setup felt like a trap: if insiders pulled the plug, the floor could fall out overnight. That fear alone accelerated the exodus.
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Concentration risk
Healthy tokens rely on a wide base of holders. YZY, however, was heavily centralized in insider wallets. With such a lopsided supply, even the suspicion of an insider dump was enough to spark panic. This lack of balance meant that the market’s stability was built on sand; once insiders were suspected of selling, the structure collapsed.
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Short-term profit taking
Adding to the downward spiral, early investors wasted no time locking in gains. Reports showed traders walking away with multi-million-dollar profits, including one wallet that cleared $6 million and another with $3.4 million from priority trades.
Ye (@kanyewest) launched his own $YZY token on @solana.
A whale spent 12,170 $SOL, worth $2.28M, to buy 2.67M $YZY and transferred it to another wallet.
Currently, these $YZY are valued at $8.29M, resulting in a profit of $6M.
Note: The liquidity pool was populated solely with… pic.twitter.com/Ma3ViJwUgi
— Onchain Lens (@OnchainLens) August 21, 2025
These massive sell-offs created a wall of selling pressure that retail traders simply couldn’t counter.
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Skepticism about sustainability
Finally, beyond the drama, a harsh reality set in: This celebrity coin was built on hype, not fundamentals. The fine print even warned buyers of the possibility of “complete loss.”
With no clear roadmap or long-term utility, many traders treated YZY as a hit-and-run opportunity, exiting after the initial pump rather than betting on future growth. Once the hype subsided, the token’s fragile foundation couldn’t withstand the pressure.
Market Lessons
The rise and fall of YZY offers clear reminders about the pitfalls of chasing hype-driven tokens without solid foundations. The following lessons can be learnt from this event:
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Hype isn’t a strategy
Kanye West’s fame created a frenzy, pushing YZY’s value into the billions within minutes. However, celebrity token buzz is temporary; when the spotlight fades or doubts emerge, prices crash just as quickly. Investors who bought in purely because of West’s involvement learned how fragile hype-driven rallies can be.
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Do your homework
On-chain data revealed that insiders controlled over 90% of the celebrity token’s supply, and liquidity pools were structured in a way that gave developers disproportionate control. These red flags were visible to anyone checking blockchain analytics platforms like Nansen or Lookonchain. This highlights the importance of researching tokenomics, insider holdings, and liquidity structures before investing.
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Celebrity projects aren’t guaranteed safe bets
While stars like Kanye West can draw millions of eyeballs to a project, history shows most celebrity meme coins don’t last. From Floyd Mayweather’s ICO promotions to other short-lived meme coins, the track record is filled with flashy launches followed by steep declines. Investors should treat these tokens as speculative plays at best, and avoid confusing name recognition with long-term credibility.
Conclusion: A Cautionary Tale for Investors
The YZY token’s wild ride demonstrates just how powerful the combination of pop culture and cryptocurrency can be. Kanye West’s influence alone was enough to spark billions in trading activity within minutes, proving that celebrity coins can move markets faster than fundamentals ever could.
For investors, YZY is a reminder that memecoins can deliver eye-popping gains in the short term but come with equally large risks. Without clear utility, transparent tokenomics, or a sustainable roadmap, hype-fueled projects often end in sharp corrections. In the end, pop culture may ignite attention, but only sound fundamentals can keep a token standing.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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