Kanye West’s token crash: YZY on Solana collapsed — 73% of investors lost $74,8 million

Key points:

• More than 51 000 traders lost $74,8 million on Kanye West’s YZY token.
• Only 11 wallets earned over $1 million, receiving nearly 30% profit.
• YZY’s market capitalization reached $3 billion, but collapsed by more than 90% in a matter of hours.

The launch of the YZY (Yeezy Money) token, associated with rapper Kanye West, resulted in massive losses for investors. According to the analytical platform Bubblemaps, out of 70 201 trading participants, 51 862 wallets, or 74%, recorded losses. The total losses amounted to $74,8 million.

Source: x.com

YZY was introduced on the Solana blockchain at the end of August and quickly gained popularity, reaching a capitalization of over $3 billion. However, within a few hours, the price plummeted by more than 90%.

Source: CoinMarketCap

Who profited from YZY

Despite massive losses, a small group of investors made significant profits. Bubblemaps recorded that 18 333 wallets earned a total of $66,6 million. However, 86% of these participants earned less than $1000 each.

Virtually all of the large profits are concentrated among a small group of addresses. A total of 11 wallets earned more than $1 million each, for a total of $18,9 million, which accounted for about 30% of the total profit. Another 99 traders earned between $100 000 and $1 million, increasing the total revenue by $43,8 million.

Source: x.com

According to analysts, the first investor in YZY was a trader under the pseudonym Naseem, who had previously earned about $100 million on a token associated with Donald Trump. Hayden Davis, known for the failed Libra project, was also involved in the project, earning about $12 million on YZY.

Who lost the most

The biggest losses were incurred by traders with relatively large positions. According to Bubblemaps, 108 investors lost between $100 000 and $1 million each — a total of $31,3 million.

1025 addresses with deposits ranging from $10 000 to $100 000 recorded losses of $56,7 million. Another 5269 traders lost between $1000 and $10 000, and three investors lost more than $1 million each, adding another $5 million to the total losses.

Source: x.com

According to Bubblemaps, traders with deposits ranging from $1000 to $100 000 suffered the greatest losses, accounting for over $113 million in total losses.

Why YZY collapsed

Experts attribute the token’s collapse to insider schemes and aggressive bot trading. Bubblemaps claims that 94% of the initial offering was controlled by insiders, and the fee structure made transactions extremely unprofitable. According to analysts’ estimates, trading costs for participants reached about 10% for the full cycle.

West previously stated that he did not intend to launch his own cryptocurrency, considering meme tokens a way to “prey on fans.” However, the YZY token was actively promoted on his official website and social media.