Kanye West, also known as Ye, launched his YZY Memecoin on the Solana blockchain that saw its value balloon to $3 billion after just 40 minutes of trading. This was preceded by a steep drop after insider trading allegations tarnished its value. The debut billed as part of a new financial model titled “Yeezy Money” has generated both enthusiasm and controversy within the cryptocurrency world.
Kanye West’s YZY Memecoin’s Blowout Start
The official drop of the YZY Memecoin came through Ye’s socials, in which he discussed it as “a new economy, built on chain.” The token drop attracted attention on release, its market cap surging to $3.16 shortly after the markets opened. Reports have the boom expanding to a whopping 6,800% from its initial price.
The token has 20% of the total supply going public, 10% retained in liquidity, and a significant 70% retained by Yeezy Investments LLC, to remain in lock for two years. The above allocation establishes a timed vesting framework to manage the token delivery.
Insider Trading Issues Arise
While there was a great deal of hype initially, YZY Memecoin came under scrutiny not long after. Data from various sources indicated that insiders controlled around 94% of the token’s supply when it went live.
A multisig wallet was reported to hold 87% of the supply before tokens were dispersed among various wallets. That high concentration raised alarm among investors, and it lost market cap rapidly to around $1.12 billion.
Coinbase’s Conor Grogan also recognized these issues, which asserted that such insider domination would result in humongous market manipulation. Therefore, most investors started questioning its integrity during its launch and its period of value.
Community Reactions and Future Outlook
Despite the volatility, some investors are still optimistic about the YZY Memecoin. Leverage trader James Wynn was also optimistic, believing that the liquidity of the token could attract heavy investment. He drew inspiration from the same success stories in the crypto space, such as Donald Trump’s Solana memecoin, which skyrocketed with gigantic speed.
The polarized reactions highlight the controversy of celebrity-endorsed cryptocurrencies. While some view these coins as profitable short-term investments, others warn that they will be prone to manipulation and collapse.
