Kanye West’s newly launched YZY token rocketed up to $3 billion, but concerns over insider sales have dented a large portion of the gains.
Popular American hip-hop star Kanye West has launched a new crypto token, YZY, on the Solana SOL $227.4 24h volatility: 0.3% Market cap: $124.04 B Vol. 24h: $6.93 B blockchain.
The cryptocurrency triggered an immediate frenzy among traders and fans, recording $3 billion in market cap within 40 minutes of the announcement.
The hype was amplified by the rapper’s direct promotion on social media and a $20,000 launch prize pool. At its peak, YZY’s price jumped by 6,800%, hitting $3.16 before profit-taking dragged it down.
West announced that YZY would also be tied to his Yeezy fashion empire, functioning as a payment method on the brand’s online store.
However, 70% of the total supply remains under Ye’s control, raising concerns about centralization and price manipulation.
Insider Concerns
Despite its flashy debut, the YZY launch quickly drew criticism. On-chain analysts revealed that only YZY tokens were added to its liquidity pool, rather than pairing with a stablecoin such as USDC. This setup allows developers to manipulate liquidity and sell tokens at high prices, causing a sudden dump.
Lookonchain reported suspicious activity, including insider wallets buying early and cashing out millions. One insider wallet allegedly turned $450,000 into nearly $1.5 million in profit.
ye(@kanyewest) launched the $YZY token. Note:
Only $YZY was added to the liquidity pool with no $USDC.
Dev may sell $YZY by adding/removing liquidity, similar to $LIBRA.Multiple insider wallets prepared funds in advance and immediately bought $YZY.
Insider wallet 6MNWV8 knew… pic.twitter.com/qv7nsx0R4J
— Lookonchain (@lookonchain) August 21, 2025
Coinbase director Conor Grogan highlighted that insiders initially controlled 94% of the supply, with a single multisig wallet holding 87% before distribution.
By my estimation, at least 94% of the new Kanye token is insider owned
-87% of the new Kanye token was owned by a single multisig (now dispersed to multiple wallets)
-3%+ was bought in a single transaction, with size, by assorted (prepared) wallets at market open
-7%+ in LP pic.twitter.com/gokotoI39s— Conor (@jconorgrogan) August 21, 2025
At the time of writing, the cryptocurrency’s market cap is $345 million. The token is currently trading around $1.15, down by over 50% in the past 24 hours.
The Risky World of Celebrity Tokens
The controversy mirrors other celebrity token rugpulls. Earlier this year, Argentina’s President Javier Milei faced backlash after promoting the LIBRA token, which crashed after hitting $4 billion in value.
The U.S. President Donald Trump’s TRUMP TRUMP $7.76 24h volatility: 0.9% Market cap: $1.55 B Vol. 24h: $223.45 M meme coin also stirred debate earlier this year. The token has lost more than $7 billion in market cap since its peak, currently trading around $8.66.
Popular YouTuber Logan Paul’s CryptoZoo project, launched in 2021, was also branded a rugpull after failing to deliver on its promises.
Under mounting legal pressure, Paul began partial reimbursements in 2024, though lawsuits alleging fraud remain unresolved.
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