Kanye West's YZY Meme Coin crashes 90% after $3 billion market cap surge

Ye's Crypto Gamble: YZY Meme Coin Plummets After $3 Billion Frenzy

Kanye West, the enigmatic artist and entrepreneur, has finally ventured into the cryptocurrency space, but not with the controversial Nazi-themed tokens some might have anticipated. Instead, a meme coin named YZY, launched on the Solana blockchain, experienced a meteoric rise, briefly touching a staggering $3 billion market capitalization and a price exceeding $3 per coin within its first hour. However, this initial euphoria was short-lived, mirroring the volatile nature often associated with both meme coins and West's unpredictable ventures.

A Meteoric Rise and a Crushing Fall

The launch, announced via West's X (formerly Twitter) account, included the contract address and a newly minted website, "Yeezy Money." This platform boldly proclaimed YZY as the future currency for transactions within its envisioned "financial system built on crypto rails." The initial surge was breathtaking. In just about 40 minutes, YZY's market cap soared to $3 billion. This dizzying ascent, however, quickly evaporated, with the market cap nosediving to approximately $336.78 million and the coin's value plummeting to $1.11. This dramatic reversal left many investors reeling.

Red Flags and Insider Fears Emerge

Given West's checkered reputation and the inherent risks of meme coins, skepticism among traders was immediate. Concerns about insider selling, a common ailment in the fast-paced crypto world, began to surface. Buried in the fine print on the "Yeezy Money" website, a disclaimer stated that the token was not available to entities in restricted jurisdictions. Furthermore, users were starkly warned about the risks associated with digital assets, including the "potential complete loss" of their investment. This cautionary note did little to quell the growing unease.

A History of Crypto Warnings and Suspicious Activity

Adding fuel to the fire, a user shared a screenshot of West's prior warning in February about being approached to promote a fake currency for $2 million. The alleged deal involved faking a hack of his account post-promotion, a scheme that eerily foreshadows the potential for manipulation. The suspicion of insider trading intensified as the analytics platform Lookonchain reported that only YZY tokens were added to the liquidity pool. This setup is a classic red flag, as it allows developers to dump their tokens at will by altering the pool's liquidity, effectively leaving other investors holding worthless assets. The drama deepened with reports of an insider reportedly losing $710,000 due to a contract error, a stark reminder of the chaotic and often ill-fated nature of such launches.