Kanye West's YZY token on the Solana blockchain crashed by 90% within hours of its launch, triggering significant concerns among traders about potential market manipulation.
YZY Token Crash
YZY token lost over 90% of its value just hours after launch, following an initial surge to a $3 billion market cap. Concerns over liquidity and market manipulation emerged almost immediately after the project started.
Market Control and Manipulation
Kanye West is the main figure behind YZY, personally contributing 30 million tokens valued at $34 million to liquidity pools. He controls over 70% of the token supply, raising red flags about insider control among the community.
Crypto Market Reaction
The YZY token's abrupt decline impacted individual investors, with some facing substantial losses. Experts and Reddit communities began debating the risks associated with celebrity-backed token launches, emphasizing the need for transparency in such projects. The overall crypto market remained largely unaffected by this incident.
The crash of YZY token highlights the high volatility in the memecoin market and the risks associated with celebrity control over such projects. This situation serves as a reminder of previous failed celebrity-backed token launches, underscoring the importance of due diligence for investors.
