Key Takeaways:
Kanye West’s YZY meme coin launched on Aug. 21 and quickly hit a $3 billion market cap, but the hype was short-lived — the token has since dropped nearly 80%, with most traders now in the red. Over 60% of YZY traders lost money, according to on-chain data. One address recorded a loss of more than $1 million, while a small number of insiders made massive profits. The first major YZY buyer was linked to a known sniper and suspected insider named Naseem, who has been connected to other controversial meme coins like TRUMP and LIBRA.Kanye West’s foray into crypto made headlines — and then heartbreaks. Within hours of launch, the YZY meme coin soared to nearly $400 million. Now it’s crashing hard, traders are bleeding, and questions are swirling about insider games.
When Kanye West launched his own meme coin on Aug. 21, expectations were sky-high. The token, YZY, briefly surged in price, reaching nearly $3 billion in market cap. But now, just days later, its value has collapsed by almost 80%. The chart is covered in red, and most traders are underwater.
Most Traders Lost Money on Kanye West’s YZY Meme Coin
According to data shared by analyst Defioasis on X (formerly Twitter), just 38% of the 30,884 wallets that both bought and sold YZY made any profit. Most of those who gained earned under $500. Only 406 wallets cleared more than $10,000. Meanwhile, over 60% of participants lost money, and nearly 15,000 wallets are down between $0 and $500.
One trader has already realized a loss of over $1 million.
Source: post by Defioasis.eth on XAt the same time, some wallets saw massive profits, raising suspicions of insider activity. Bubblemaps found that one of the very first wallets to buy YZY belonged to Naseem, a trader previously linked to early buys of Official Trump (TRUMP) and Libra (LIBRA) meme coins.
He bought $250,000 worth of YZY on launch day, turned it into $1.4 million, and already cashed out $800,000.
Naseem has a personal account with nearly 30,000 followers. His last post was from Feb. 1, just before the LIBRA scandal involving Argentine President Javier Milei. That token ended in massive losses for most traders and was widely labeled a scam.
Another wallet linked to Hayden Davis, one of the LIBRA token creators, was also spotted buying YZY.
‘Never Touch a Coin from a Celebrity’
Kanye West’s YZY meme coin had been anticipated for months amid various rumors. But history suggests celebrity-backed coins rarely end well. Most have lost close to 100 percent of their value.
Still, reputations of the celebrities themselves often remain untouched. Traders, meanwhile, continue to chase hype despite repeated losses. YZY appears to be the latest example.
In the case of YZY, another troubling pattern emerged. Several insiders involved in this token had also been linked to previous meme coin launches like TRUMP and LIBRA. The same wallets and players keep showing up — sniping early, taking profits, and leaving retail traders with losses. It raises serious questions about how widespread these schemes might be and whether the crypto community can develop better ways to weed out such manipulation.
Is This a Classic Rug?
Looking at the chart of Kanye West’s YZY meme coin, the pattern resembles a typical rug pull. The token pumped hard after snipers entered early. Large green candles on the 15-minute timeframe suggest a few big buyers helped spark the rally.
Now, YZY has fallen below $100 million in market cap. Most holders are in the red. With little sign of whale accumulation, a turnaround seems unlikely.
Source: DEXScreenerMore than 31,000 wallets still hold the token — but whether they’ll ever break even is another question.
The rise and fall of Kanye West’s YZY meme coin is yet another reminder that hype and celebrity alone aren’t enough to build lasting value in crypto. Without transparency and fair launch practices, even the most anticipated tokens can end in losses for traders.
The post Kanye West’s YZY Meme Coin Bloodbath: One Trader Lost $1M appeared first on Cryptonews.
