A recent blockchain data analysis revealed a connection between the wallet that acquired Kanye West-themed YZY tokens and several wallets linked to the LIBRA token.
Connection between YZY and LIBRA
Analyst Dethective claims that the wallet, which purchased YZY tokens worth $250,000, is tied to two wallets that previously extracted around $21 million from the LIBRA token. The wallet bought YZY at a price of $0.20, significantly lower than the market price at that time. Shortly after, it secured over $1 million in profit, which was later funneled into a treasury.
Nansen and Cyvers Confirm Analysis
Analytics platforms Nansen and Cyvers also confirmed overlaps between the YZY wallet and the extraction network wallets associated with LIBRA. Cyvers stated, "The YZY launch sniper wallet does overlap with the LIBRA extraction flow wallets." Nansen added that they cannot definitively connect it to Hayden Davis, the figure associated with the LIBRA token.
Launch of YZY Token and Market Dynamics
The YZY token was launched on Thursday and reached a market cap of $3 billion within 40 minutes before dropping to about $1.05 billion. As of the time of writing, the token is trading around $1, down more than 60% over the past day. The launch of the token is part of Kanye West's initiative to create a "new economy on-chain."
The connection between the YZY wallet and the LIBRA token raises questions about potential insider trading within the cryptocurrency market, while also highlighting the dynamics of new tokens and their impact on capitalization.
