The launch of Kanye West's YZY memecoin on Solana sparked reactions, but anti-bot protections failed. Elite traders reaped significant profits while retail buyers faced heavy losses.
Anti-Bot Fail: How Elites Bypassed Protections
YZY Money, Kanye's ecosystem, introduced various tools including a payment platform and debit cards that emphasized fairness. However, the implemented anti-sniping measures, like deploying 25 similar smart contracts, did not prevent manipulation. Solscan data showed that a wallet, AwY1VTMdhsSRTe, executed two swaps totaling 250,000 USDC, yielding significant YZY profits.
Who Profits from Memecoins? Retail Investor Losses
Data indicates that 13 wallets earned over $24 million since the YZY launch. Meanwhile, several holders each suffered losses exceeding $800,000, with one investor losing up to $1.8 million. This highlights the stark disparity in profit opportunities between elite traders and average participants.
Is Token Distribution Fair in Memecoins?
The YZY launch raises crucial questions about fair access to memecoins. Despite attempts to democratize entry, data suggests that controlling factors remain within a small group of traders. Without stringent audits and liquidity caps, such projects remain vulnerable to manipulation.
The launch of the YZY memecoin highlights existing issues around the disparity of opportunities between elite players and retail traders. The widespread use of opaque strategies poses challenges for fairness in new cryptocurrency initiatives.
