Crypto Rugpull? Arthur Hayes Slams Kanye’s $YZY Token After Costly Gamble

Arthur Hayes just dropped a bombshell on Kanye West's $YZY token—and it's not pretty. The BitMEX co-founder publicly called out the celebrity-backed cryptocurrency after taking what appears to be a significant financial hit.

Hayes, known for his sharp market insights and no-nonsense commentary, didn't hold back in his criticism. His remarks suggest deeper concerns about celebrity-led crypto projects and their potential risks to investors.

This isn't the first time high-profile figures have faced scrutiny in the crypto space—but when someone like Hayes speaks, the market listens. His track record gives weight to warnings that might otherwise be dismissed as FUD.

Celebrity tokens continue walking a fine line between innovation and pure speculation. Sometimes it's hard to tell if you're investing in tech or just buying someone's clout—and today, it looks like even the pros can get burned chasing the hype.

The world-famous Hip-Hop artist, Ye, better known as Kanye West, launched his official crypto, $YZY. According to Nansen Data, within just 40 minutes of its release, the YZY token hit a market capitalization of $3 billion, but it quickly stumbled back to $1.05 billion. Despite the hype, on-chain analysts raised red flags. 

Is YZY Legitimate? Analysts Claim Suspicious

West recently launched the token carefully after denying the promotion of fake currency for $2 million in February. But crypto experts were quick to point out the threats of potential insider trading risks. 

Arthur Hayes, co-founder of BitMEX, reportedly bought into the token, viewing it as a short-term investment. However, the sentiment didn’t last long as he condemned the crypto. He wrote on X, “Oopsie … fam next time pls don’t let me trade shitters like $YZY. Should have just kept two-steppin.” 

Coinbase Expert Verify Insider Trading in YZY

Coinbase director Conor Grogan said that insiders held 94% of the supply, with one wallet initially controlling 87% before distributing to others. 

Grogan said, “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,” he added. 

Blockchain analytics firm Lookonchain also raised concerns, saying, “Multiple insider wallets prepared funds in advance and immediately bought $YZY…Insider wallet 6MNWV8 knew the contract address in advance and even tried buying yesterday.” 

Mixed Reactions from the Traders 

One trader spent $24,000 in solana priority fees to secure $3.4 million gains, while another pocketed $6 million at peak. Not all were lucky, though. One user mistakenly bought the wrong contract, losing about $710,000. Fortunately, the user later recovered some losses by purchasing the correct contract.

This highlights the extreme volatility and risks involved in the token. It also demonstrates the substantial insider profits reported during the YZY token launch phase.