Kanye West's YZY cryptocurrency experienced an 81% drop after his Instagram account was hacked to promote a counterfeit token, leading to significant market disruption.
Instagram Hack and Its Impact
The YZY cryptocurrency saw a drastic price drop after Kanye West's Instagram account was hacked for promoting a fake token. This caused market turmoil and disrupted the financial networks tied to the project.
Market Trends and YZY Liquidity
Following the incident, there was a rapid withdrawal of liquidity, with approximately $7 million being removed from the market. The event highlighted that much of YZY's supply is controlled by a few wallets.
Long-Term Implications for the Market
YZY's market cap plummeted from $3 billion to $160,000. The incident underscores the vulnerabilities associated with celebrity-backed crypto projects and raises questions about market trust and security.
The YZY collapse serves as a stark reminder of the dangers related to celebrity-driven cryptocurrencies. This incident may affect investors' perceptions of the cryptocurrency market.
