On August 21, Kanye West’s highly anticipated YZY token debuted on the Solana blockchain, sparking an intense wave of speculation. Within the first hour, prices surged nearly 1,400%. But the euphoria was short-lived, within hours, the token plunged by more than 80%, leaving thousands of traders trapped with losses.
The aftermath revealed widespread financial damage. Out of roughly 70,200 participants, more than 51,800 wallets ended up in the red, with total estimated losses of about $74 million.
While the majority lost money, a few investors walked away with major profits. Around 18,000 wallets came out ahead, though most earned less than $1,000. Only 11 wallets secured life-changing returns, and each profited more than $1 million and collectively capturing nearly a third of all profits.
This uneven distribution raised suspicions of insider trading and sniper strategies, where certain traders exploit early access to buy tokens before the wider market has a chance.
On-chain analysis suggested that professional “snipers” were active during the YZY launch. These traders, known for pouncing on new token listings within seconds, reportedly extracted millions in profits. Some individuals linked to previous controversial launches were also spotted among the earliest buyers, adding to speculation about unfair advantages.
The YZY collapse follows a now-familiar trend among celebrity-backed memecoins. Similar projects tied to public figures in music, sports, and entertainment have experienced explosive openings followed by sharp declines of 70–90%. For retail investors, these launches often end in disappointment as the hype-driven momentum fades almost instantly.
The YZY incident serves as a stark reminder of the risks in speculative crypto markets. While celebrity branding can generate short-term excitement, tokens with weak fundamentals and concentrated insider activity often end in sudden collapses. For regulators, the event also reignites debates about oversight in celebrity-driven crypto launches.
In the end, the YZY token created by Kanye West can be remembered not so much due to its spectacular launch but due to the massive number of losses it caused, turning out to be another warning story in the unstable realm of memecoins.