Kanye West YZY memecoin skyrockets to 3 billion then collapses as insiders raise shocking concerns

When Kanye West — now officially known as Ye — told fans on x that the YZY memecoin had dropped, the crypto world went into a frenzy. Within just 40 minutes of launch on the Solana blockchain, the new token hit an astonishing $3 billion market capitalization. But the euphoria was short-lived.

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The token’s value has since tumbled to about $1.05 billion, as reports of insider trading and questionable liquidity practices began to surface.

“A new economy, built on chain”

Promoted through the official website for Yeezy Money, West described YZY as “a new economy, built on chain”. The site positions the token as the backbone of a decentralized financial system.

Yet, in the fine print, users were reminded of the risks of digital assets, with a stark warning about the “potential for complete loss.” Despite this, YZY’s rapid growth lured in not only fans but also seasoned crypto traders.

Suspicious insider moves

Onchain analytics platform Lookonchain revealed troubling signs: insiders controlled nearly 94% of the token supply, with a single multisig wallet initially holding 87% before distributing it to other wallets.

Conor Grogan, a director at Coinbase, flagged that the token’s liquidity pool was set up in a way that gave developers the ability to manipulate or sell tokens at will.

One alleged insider even mistakenly bought the wrong token, losing $710,000, but managed to recover profits later. Meanwhile, another savvy trader reportedly netted $3.4 million by paying hefty Solana network fees to jump the queue.

Crypto whales still dive in

Despite these red flags, big traders are piling in. Leverage trader James Wynn compared the YZY hype to Donald Trump’s TRUMP memecoin, which surged from $4 billion to $15 billion in just 28 hours earlier this year. Wynn admitted he “aped in” on a 60% pullback, hoping for a quick 4x return.

Even Arthur Hayes, co-founder of BitMEX, is rumored to have bought into YZY.

The celebrity token craze

Celebrity-driven coins are nothing new. In February, Javier Milei, President of Argentina, boosted the LIBRA token by sharing it on X, only to delete his post hours later. The result? A market crash and calls for stricter regulation.

Earlier in 2025, US President Donald Trump’s TRUMP token gained massive traction ahead of his inauguration, further proving that political and celebrity coins can spark wild — and risky — market swings.

Kanye West’s risky bet

With YZY, Kanye West has once again thrust himself into the global spotlight — but this time, not through music or fashion, but the volatile world of cryptocurrency.

At the time of writing, West’s personal net worth is estimated at $400 million, according to Forbes. But whether YZY will become a lasting crypto ecosystem or just another speculative frenzy remains to be seen.

For now, the memecoin hype continues, and the only certainty is that risk and reward walk hand in hand in this new digital economy.