Kanye West’s YZY Token Collapse Wipes Out Millions in Crypto Market
Kanye West's YZY memecoin launch turned into a spectacular collapse, erasing millions in value within hours. The token briefly surged to a $3 billion market cap before crashing to $1.05 billion as insiders cashed out profits.
On-chain analysts revealed suspicious trading patterns from the outset. The liquidity pool contained only YZY tokens without USDC backing, enabling developers to manipulate funds freely—a pattern seen in previous celebrity token launches.
One insider wallet generated $1.5 million profit by front-running the contract address, while another trader accidentally lost $710,000 buying a fake YZY token before recovering losses. The most profitable insider secured $3.4 million by strategically splitting purchases across two wallets.
