In a developing story, Kanye West’s YZY memecoin has left thousands of retail investors with significant losses.
West launched his YZY memecoin on the Solana blockchain.
The launch was controversial, with many observers pointing to alleged insider sales and snipers.
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The YZY token skyrocketed to a $3 billion marketcap in just 40 minutes.
But then the token was slumming at a mere $1.05 billion.
13 cryptocurrency wallets amassed over $24.5 million in profits by rapidly selling off their YZY memecoin.
However, the majority of early buyers were not so fortunate.
Of the first 99 wallets to purchase YZY, only nine retained their tokens, with many others selling at a loss.
According to reports, more than 56,000 wallets interacted with the memecoin, with 27,000 still holding tokens worth over $1 at the time of reporting.
One trader continues to hold YZY tokens, facing an unrealized loss exceeding $800,000.
The biggest recorded loss was a wallet that suffered a $1.8 million hit, followed by another with a $1.2 million loss.
Crypto data provider Bubblemaps described the situation as “worse than we thought.”
They also say one of the top profiteers as a sniper previously linked to the Trump memecoin, which similarly yielded millions for early buyers.
“There’s an elite group of snipers who don’t compete but coordinate, making millions destroying charts,” Bubblemaps stated.
Controversy Surrounding Celebrity Memecoins like YZY memecoin
The YZY token’s rapid pump and dump has drawn comparisons to other celebrity backed memecoins.
TikTok star Haliey Welch’s HAWK token, inspired by her viral “Hawk Tuah” catchphrase, followed a similar trajectory in December.
This is similar to Argentina’s President Javier Milei hyping the LIBRA token to a $4 billion market cap.
He later came under fire when the Libra token was classified a scam.
As a matter of fact, these kinds of celebrity endorsed tokens stand in the way of actual memecoins achieving great heights in the crypto space.
