Kanye West’s YZY meme coin swings wildly this week, raising questions: short-term volatility or a looming scam?
The picture of volatility in just one week has been aptly illustrated by Kanye West’s meme coin, YZY Money (YZY).
The market’s demand drove the YZY meme coin price to an immediate high upon debut, but when demand declined, the token crashed, causing investors to suffer a significant loss.
82% Of Kanye West’s YZY Meme Coins Crashed
Kanye West (now known as Ye) was credited with giving the recently created meme coin YZY Money a head start.
Notably, minutes after the introduction, the YZY meme coin shot up to an all-time high of $3.16, reaching a market valuation of $400 million and more before collapsing.
With a market valuation of $166.63 million, the YZY token is presently trading at $0.5554, 82% lower than its all-time high.
Its trading volume has also decreased to $37.98 million, indicating a drop in investor interest.
Notably, some cryptocurrency specialists foresaw this possibility in advance, based on the performance of past celebrity tokens that scammers and insiders dominated.
Fuel Downtrend Pumped, Dumped By YZY Insiders
Kanye West’s token debut unmistakably corrected the hype vs. reality divide.
When the YZY meme coin was introduced on August 21, it quickly became one of the most popular meme coins, but the excitement was short-lived.
Reports surfaced shortly after the debut claiming insiders were in charge of 90% of YZY’s supply and were keeping over $24.5 million of the revenues.
More significantly, some of these were given an early advantage by receiving early access or knowing information that wasn’t even made public before the debut.
According to the Bubblemaps research, one such elite insider is Hayden Davis, who co-founded the LIBRA project and made $12 million.
Bubblemaps saw that his wallet concealed the fund sources through numerous exchanges and bought Kany’s token a minute after the debut.
More worrisome for investors is the assumption that he might have assisted in the token launch. His LIBRA project disaster, which was accompanied by allegations of poor management, is the reason for this.
The court recently released $57 million USDC linked to Davis and Ben Chow, which is probably used to finance his YZY acquisitions.
A TRUMP insider who made $100 million also suggested purchasing YZY.
The pump and dump caused the YZY meme coin to plummet by 82%, benefiting insiders at the expense of others.
Investors Are Startled By Kanye West’s Instagram Account Hack, Fake Token Scam
In a startling disclosure on August 26, Kanye West disclosed that hackers had compromised his Instagram account.
Since he only followed one account of his wife, Bianca Censori, he acknowledged that he is now following a phony coin called “yzytoken,” which is significant.
When he abruptly added a new account called “yzytoken” to his following, the token’s market value surged to $7 million, but it quickly plummeted to $160,000, generating significant confusion.
Investors have been devastated by this sequence of events surrounding the debut of the YZY meme currency, as the token has been plagued with insider trading, pump and dump, and now scams.
According to experts, it is allegedly following a similar pattern to previous celebrity meme currencies.
For instance, the token launches of Donald Trump, Kim Kardashian, and others saw a significant surge initially but a swift decline shortly after.
