Insiders Money In Hundreds of thousands as Rapper Ye ‘Apparently’ Points Solana-Primarily based YZY Token
YZY Cash, a Solana-based memecoin linked to Ye (previously Kanye West), debuted earlier on Thursday with blistering beneficial properties and an equally sharp controversy.
Ye’s X account posted concerning the token in early Asian hours on Thursday, elevating fast issues about it being a compromised account. It later posted a video exhibiting Ye speaking about and confirming the issuance (it’s unclear if it’s the actual Ye or an AI era).
The token briefly touched $3.16 in early buying and selling — a surge of practically 6,800% from its challenge worth — with some trackers claiming it briefly commanded a $3 billion market cap.
Behind the frenzy supposedly sits the broader YZY ecosystem, which Ye’s crew has pitched as together with a YZY token, a Ye Pay processor for transactions, and a YZY Card for international spending of YZY and USDC.
YZY’s construction was first revealed by CoinDesk in February, which reported that 70% of provide would go on to Ye personally, with 10% for liquidity and 20% for public sale.
On the time, insiders mentioned Ye had initially demanded an 80% stake — the identical allocation construction tied to Donald Trump’s TRUMP token — earlier than being negotiated down. The undertaking has additionally carried heavy baggage from the beginning. Ye had beforehand declared that “cash prey on the followers with hype” earlier than backtracking and approving YZY.
Sources informed CoinDesk the token was meant to imitate TRUMP’s success, at the same time as Argentina was roiled by an identical scandal when President Javier Milei’s endorsed LIBRA coin collapsed as a pump-and-dump.
Critics flagged then — and now — that such insider-heavy distributions tilt threat squarely towards retail consumers, particularly when paired with a single-sided liquidity pool.
The token distribution reveals 20% allotted to the general public, 10% to liquidity, and 70% to Yeezy Investments LLC, locked for twenty-four months underneath a structured vesting association through Jupiter Lock.
To stop bot-driven manipulation, 25 contract addresses have been initially deployed, with just one randomly chosen because the official token. That 1-in-25 anti-sniping setup was billed as a fairer launch — however on-chain knowledge suggests insiders nonetheless had advance entry.
Analytics account Lookonchain recognized pockets 6MNWV8 as realizing the contract handle prematurely. The pockets even tried to purchase YZY earlier than launch. As soon as stay, it spent 450,611 USDC to accumulate 1.29 million tokens at roughly $0.35 every. It later offered 1.04 million YZY for 1.39 million USDC, leaving 249,907 tokens price about $600,000 — reserving a revenue of greater than $1.5 million.
“Insider pockets 6MNWV8 knew the contract handle prematurely and even tried shopping for yesterday,” Lookonchain wrote on X.
OnChain Lens flagged a good bigger whale who invested 12,170 SOL (about $2.28 million) for two.67 million YZY. Present holdings are valued at $8.29 million — an unrealized achieve of about $6 million.
Solely YZY tokens have been seeded into the liquidity pool, with out pairing towards USDC. That single-sided setup permits builders or giant holders so as to add and take away liquidity in ways in which successfully allow them to money out, a construction much like the controversial LIBRA token.
“Solely $YZY was added to the liquidity pool with no $USDC. Dev could promote $YZY by including/eradicating liquidity, much like $LIBRA,” Lookonchain famous.
The hype and fast beneficial properties present how a lot hypothesis nonetheless drives Solana’s memecoins.
In the meantime, YZY has already slipped to almost $1, with some early consumers taking heavy hits.
On-chain knowledge reveals pockets 6ZFnRH spent 1.55 million USDC to purchase 996,453 YZY at $1.56, solely to promote at $1.06 for 1.05 million USDC — reserving a lack of practically $500,000 in underneath two hours.
Learn extra: Ye, Self-Proclaimed ‘Nazi’ Who Stated ‘Cash Prey on Followers,’ Plans YZY Token
