The launch of YZY token by famous musician Kanye West stirred a heated discussion in the cryptocurrency market. Within a short time, it showed strong growth but soon followed by a sharp decline.
How YZY skyrocketed to $3 billion
The YZY token reached a market capitalization of $3 billion in just 40 minutes after its launch, according to data from analytics platform Nansen. However, by Thursday, its value dropped to nearly $1.05 billion amid heavy selling pressure. Information from analyst Lookonchain indicates initial problems with the token — liquidity was backed only by YZY itself with no USDC support.
Profits for a few, losses for many
Some insiders managed to turn considerable profits. One wallet, benefitting from prior information, bought 1.29 million YZY for $450,611, then sold 1.04 million tokens for $1.39 million, making a profit of over $1.5 million. Conversely, other traders incurred significant losses. For instance, one investor lost $500,000 after purchasing tokens at $1.56 and selling them at $1.06.
Celebrity factor keeps fueling the hype
The launch of YZY attracted attention from other prominent figures, such as BitMEX co-founder Arthur Hayes. He reported purchasing the token and noted that high interest from major players could sustain liquidity. He compared the situation to Donald Trump's meme coin, which swiftly transformed from a token into a successful asset.
The launch of YZY token exemplifies how celebrities can impact the cryptocurrency market, creating rapid wealth opportunities and risks for speculators.
