The YZY token unveiled by Kanye West generated significant buzz on the Solana network but quickly turned into substantial losses for most traders.
Overall Losses Among YZY Traders
Following the YZY launch on August 20, more than 70,000 wallets engaged in trading, with nearly three-quarters of them concluding their trades at a loss. According to data from Bubblemaps, over 51,000 wallets collectively lost around $74.8 million.
Profit and Loss Analysis
Bubblemaps' report indicates that out of 70,201 total traders, 51,862 wallets lost money. The majority, over 50,000 wallets experienced losses between $1 and $1,000. Additionally, 5,269 wallets lost between $1,000 and $10,000, while over 1,000 wallets incurred losses ranging from $10,000 to $100,000. On the profitable side, over 18,300 wallets made gains, but over 15,792 of them earned less than $1,000.
Market Manipulation Allegations
The price of YZY collapsed by nearly 70% shortly after launch, leading to allegations of market manipulation. Bubblemaps claims that certain traders, including Naseem and Hayden Davis, used bots to scoop up tokens before they became available to the general public. "The past week truly exposed the failures of our industry," said Bubblemaps.
The situation with YZY raises questions about the need for stricter regulation in the memecoin sector. The token's decline and significant losses faced by traders once again cast doubt on the safety of cryptocurrency investments and market manipulation.
