Ye-Linked YZY Token Surge Wipes Out Millions for Traders

YZY Token Launch Leaves Most Traders in Losses While Insiders Profit

The Solana-based YZY token, reportedly linked to rapper Ye (formerly Kanye West), has delivered heavy losses to the majority of buyers, while a small group of early investors and insiders pocketed significant gains, according to blockchain analytics platform Bubblemaps.

The token debuted last week as part of the “YZY Money” ecosystem, which included payment rails and a branded card. On-chain data suggest that thin liquidity and rapid speculative trading allowed whales and early wallets to extract millions, leaving the wider crowd to absorb nearly all losses.

Bubblemaps reported:

51,800+ wallets lost $1–$1,000
5,269 wallets lost $1,000–$10,000
1,025 wallets lost $10,000–$100,000
108 wallets faced six-figure losses, with three traders losing over $1 million each

Conversely, just 11 addresses earned $1 million or more, representing only 0.015% of total wallets. Another 99 addresses gained over $100,000, while 2,541 wallets made at least $1,000. Overall, the broader crowd is down approximately $8.2 million, illustrating a starkly lopsided distribution of profits.

The token’s structure contributed to the uneven outcome. Around 70% of the supply was allocated to Yeezy Investments LLC under Jupiter’s vesting system, 20% was sold to the public, and 10% was designated for liquidity. The liquidity pool contained only YZY tokens without a stablecoin pairing, making it susceptible to rapid withdrawals, reminiscent of Argentina’s short-lived LIBRA token.

Early access wallets made substantial gains. Address 6MNWV8, for instance, spent 450,611 USDC for 1.29 million YZY at $0.35, flipped 1.04 million tokens for 1.39 million USDC, and still holds roughly 249,907 YZY worth about $600,000—netting an estimated $1.5 million profit.

As of Thursday, YZY’s market cap has declined 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 volume has dropped to $1.8 million, per DEXTools data.

The token’s performance mirrors the trend seen with many celebrity-backed memecoins: significant upside largely accrues to insiders, while the broader public is left with limited gains or losses.