Kanye West’s YZY Meme Coin Hits $2B Before Crashing to $1.4B

Rapper Kanye West announced the launch of his meme coin “YZY” on the Solana blockchain. The announcement came through a post on X, though questions remain about whether his account was compromised. Despite doubts, the news triggered a rapid surge in trading. Market data shows YZY’s valuation peaked at $2.04 billion shortly after release. However, it quickly fell back to around $1.4 billion. The dramatic rise and fall highlighted both excitement and unease in the market.

Concentrated Holdings Raise Concerns

One major concern is the extreme concentration of token ownership. Reports show the top four wallets hold 95.17% of YZY’s supply. Several of these wallets are newly created, suggesting possible insider involvement. Some holders have already seen large profits. A new wallet spent $2.2 million on 2.7 million YZY at $0.82 per token, now sitting on an unrealized gain of $1.3 million. Other addresses reported profits exceeding $1 million within hours. The rapid accumulation by insiders has raised doubts about fair distribution.

Tokenomics and Utility

The YZY project has published details of its tokenomics. Public supply is capped at 20%, with a three-month lock-up period. After this, 30% will be released immediately, while the rest will unlock gradually over two years. Liquidity accounts for 10%, tied to lock-up schedules. Alongside the token, the project’s website introduced YE Pay, a payment processor, and YZY Card, a crypto-linked debit card. Developers also claimed to deploy anti-frontrunning mechanisms to prevent unfair trading advantages. However, on-chain data suggests insider wallets were prepared well before launch.

Insider Trading Allegations

Blockchain investigators found troubling signs. Some wallets appeared to know the official contract address in advance. One insider spent 450,000 USDC to acquire 1.29 million YZY, selling most for $1.39 million in profit. Another Coinbase executive claimed 94% of the supply is controlled by insiders, with 87% concentrated in a single multi-signature wallet. The liquidity pool setup also sparked questions. Only YZY was added to the pool, not USDC, allowing developers to sell tokens by shifting liquidity. This structure is similar to tactics seen in controversial projects like Libra.

Outlook for YZY

YZY’s fully diluted valuation has already dropped from $3.2 billion to about $2 billion. The mix of rapid gains, insider dominance, and unclear governance has left investors cautious. Whether Kanye West’s involvement is genuine or the result of a hacked account remains unresolved. Currently, YZY’s rise and fall stand as another reminder of the risks behind celebrity-driven crypto launches.