The YZY token, launched by Kanye West, faced a sharp decline in August 2025, resulting in financial losses for thousands of investors.
Token YZY's Decline
In August 2025, the YZY token suddenly fell in price, leading to a loss of $75 million among retail investors. After a brief surge, many holders faced significant losses.
The Role of Insiders in the Crash
Insiders, such as Hayden Davis, extracted over $18 million from YZY trades. Over 90% of the total token supply was held in insider wallets, which contributed to a rapid liquidity drain.
Impact on the Cryptocurrency Market
The crash of the YZY token demonstrates the volatility of celebrity-backed cryptocurrencies. This incident led to retail losses ranging from $100,000 to $1,000,000, particularly within YZY-related asset pools. Despite the retail impact, most major exchanges avoided listing the token, limiting institutional risks.
The situation surrounding the YZY token highlights the risks associated with investing in cryptocurrencies endorsed by celebrities. The lack of transparency and insider control raises questions about trust in such projects.
