Recently, Kanye West launched a new altcoin named Yeezy Money (YZY) on the Solana blockchain, only to see its value sharply decline. According to analytics platform Bubblemaps, most of the over 70,000 investors experienced losses.
Significant Losses for Most Investors
Bubblemaps reported that out of 70,201 YZY investors, 51,862 wallets, or 73.8%, suffered losses totaling approximately $74.8 million. Among those affected, 1,025 wallets lost over $10,000, while 18,333 investors made a profit, with 86% earning less than $1,000, illustrating uneven profit distribution.
Allegations of Insider Trading
Promoted through Kanye West's official website and social media, YZY aimed to establish financial control independent of centralized systems. However, it depreciated by nearly 70% just hours after launch. Analysts indicated that this significant value shift stemmed from insider trading and a sniping strategy. An anonymous investor named Naseem, who made $100 million from a memecoin, was identified as the first buyer of YZY. Reports also surfaced that Hayden Davis, associated with failed projects, allegedly earned only $12 million.
Implications for the Cryptocurrency Market
Bubblemaps highlighted that these individuals have profited similarly across various projects, indicating the industry's failure to prevent repeated manipulation. Kanye West had previously criticized the idea of launching his cryptocurrency, claiming that memecoin enthusiasts are often misled by excessive hype.
The YZY launch underscored significant issues within the cryptocurrency space, particularly regarding investor protection against manipulation. The lessons drawn from this situation may influence future projects and their management.
