YZY Token Launch Leaves Majority of Traders in Losses While Insiders Profit
The Solana-based YZY token, reportedly tied to rapper Ye (formerly Kanye West), has caused significant losses for most buyers, while a small group of early investors and insiders secured substantial profits, according to blockchain analytics platform Bubblemaps.
Launched last week as part of the “YZY Money” ecosystem—which includes payment rails and a branded card—the token saw rapid speculation and thin liquidity. On-chain data indicate that whales and early-access wallets captured the majority of gains, leaving the broader public to absorb nearly all losses.
Bubblemaps reported:
- 51,800+ wallets lost between $1 and $1,000
- 5,269 wallets lost $1,000–$10,000
- 1,025 wallets lost $10,000–$100,000
- 108 wallets faced six-figure losses, including three traders losing over $1 million each
In contrast, only 11 addresses recorded profits exceeding $1 million, representing 0.015% of all wallets. An additional 99 wallets gained over $100,000, while 2,541 addresses cleared at least $1,000. Overall, the wider crowd is down roughly $8.2 million, highlighting the highly concentrated nature of profits among insiders.
Structural factors amplified the lopsided outcomes. Around 70% of the token supply was allocated to Yeezy Investments LLC under Jupiter’s vesting system, 20% was sold to the public, and 10% was reserved for liquidity. The liquidity pool, seeded solely with YZY tokens and without a stablecoin pairing, made the market vulnerable to sudden withdrawals—a scenario reminiscent of Argentina’s short-lived LIBRA token.
Early-access wallets captured outsized profits. For instance, address 6MNWV8 spent 450,611 USDC for 1.29 million YZY at $0.35, sold 1.04 million tokens for 1.39 million USDC, and still holds roughly 249,907 YZY worth about $600,000—generating an estimated $1.5 million profit.
As of Thursday, YZY’s market capitalization has dropped to $544.9 million, with liquidity at $42.7 million and 26,590 holders, down sharply from the initial frenzy that briefly valued the token at $3 billion. Daily trading volume has declined to $1.8 million, according to DEXTools data.
YZY’s trajectory mirrors a common pattern among celebrity-backed memecoins: unless you were an early participant or insider, the odds of generating significant gains are extremely low.
