Kanye West’s YZY memecoin has turned into another cautionary tale for celebrity-backed crypto projects. Launched on Solana on Aug. 21, YZY skyrocketed 1,400% in its first hour before collapsing over 80%.
Data from Bubblemaps shows that out of 70,200 wallets exposed to the token, more than 51,800 lost money. Only 11 wallets managed to profit more than $1 million, while just 99 cleared $100,000 in gains. At the same time, three traders lost more than $1 million each.
One high-profile loser was Andrew Tate, who reportedly burned $700,000 after opening a leveraged short on YZY via his Hyperliquid account. On the flip side, blockchain sleuths point to familiar “insiders” profiting yet again. Hayden Davies, tied to previous scandals around the Libra and Melania meme tokens — made $12 million sniping the YZY launch just a day after regaining access to frozen funds. Another network linked to a trader named Naseem, who famously made $100 million on TRUMP coin, was also among the first to buy.
Despite brief retail hype, YZY has slipped to $0.55, with only 19,531 holders left, per Nansen data. The pattern isn’t new: more than 30 celebrity-endorsed tokens launched on Solana in mid-2024, backed by figures like 50 Cent, Iggy Azalea, Caitlyn Jenner, and Ronaldinho. All have since dropped by over 73%. Many crashed by more than 90%.
The YZY saga underscores a recurring reality — celebrity hype may pump volume, but insiders and early snipers capture nearly all upside, while the majority of retail investors end up footing the bill.
