The YZY token, associated with Kanye West, was launched on the Solana platform and quickly became a topic of discussion due to substantial financial fluctuations and alleged insider trading.
First Hours of YZY Trading
The YZY token was introduced on Thursday and in the first hours of trading showed an increase of over 1400%, reaching a peak of $3. However, it was soon followed by a sharp decline of 74%, bringing the price down to approximately $0.77. This triggered accusations of insider trading among market participants.
Profits and Losses for Participants
Data from Nansen showed that 13 wallets each gained over $1 million from trading YZY tokens, collectively earning $24.5 million. Out of the first 99 wallets that purchased the token, only nine still held it by Friday. More than 56,000 wallets interacted with YZY, but many incurred losses. According to Dune Analytics, 64.1% of participants ended up with small losses between $0 and $500.
Analysis of Insider Activities
Research by Dexter Lab claimed that the YZY launch could be characterized as a 'pump-and-dump'. The analysis indicated that insiders controlled 94% of the tokens, with one multisignature wallet holding 87%. The six largest wallets collectively constituted over 70% of the total supply. Liquidity pools were also created for insiders to sell their tokens directly into retail liquidity.
The YZY token launch has highlighted issues related to insider trading and volatility in the crypto market. As a result, market participants face serious risks potentially linked to manipulation and unfair practices.
