What happened?
More than 70% of traders who invested in Kanye West’s Solana-based memecoin YZY ended up losing money, according to blockchain analytics firm Bubblemaps. Out of the 70,201 wallets that traded YZY, 51,862 recorded losses, totaling nearly $74.8 million. Despite being heavily promoted through West’s official channels, the token’s price crashed nearly 70% within hours of its launch.
Who does this affect?
This incident primarily affects the 73.8% of investors who suffered financial losses from trading the YZY token. With over 1,000 wallets losing more than $10,000 each, many individuals are facing significant financial setbacks. Additionally, the situation impacts Kanye West’s reputation, as he has denied involvement in the token launch, claiming his accounts were hacked.
Why does this matter?
The collapse of the YZY token highlights ongoing issues with market manipulation and insider trading practices in the cryptocurrency world. The fact that nearly 30% of profits went to just 11 wallets raises concerns about fairness and transparency in crypto markets. This event also underscores the need for more stringent oversight and regulation to protect investors and maintain market integrity.