Kanye West launches YZY memecoin, which has tripled in value in an hour

Kanye West, who has long promised to issue his own coins, has finally done so. It turned out that it was not about nazi tokens Swasticoin. The memecoin on Solana, dubbed YZY, reached a market capitalization of $3 billion and a price of over $3 in just over an hour. But given the reputation of the rapper and memecoins in general, traders quickly had concerns about insider selling.

On his X-account, he shared the contract address along with a freshly created Yeezy Money website. The homepage states that YZY will serve as a currency to support transactions within YZY MONEY, a “financial system built on cryptocurrency rails.”

Within 40 minutes of its launch, the YZY token reached a market capitalization of $3 billion, but then fell to about $336.78 million. The value of the coin dropped to $1.11. The fine print on the website states that the token is not available to organizations in limited jurisdictions. Users are also warned about the risks associated with digital assets, including the “potential total loss” of money. One user shared a screenshot of West warning users in February that he had been asked to promote a fake currency for $2 million, which would have involved simulating a hack of his account after the token was promoted.

Many have also noticed the possibility of insider trading. Lookonchain analytical platform said that only YZY tokens were added to the liquidity pool. This means that developers can sell tokens at any time convenient for them, changing the liquidity of the pool.

Interestingly, one of the insiders apparently made a mistake with the contract and lost $710 thousand.

Source: Ye