Kanye West’s Memecoin YZY Launch Results in 60% Investor Losses
On August 21, Kanye West launched his memecoin YZY on the Solana blockchain. The token initially reached a market cap of $3.1 billion before falling 65% to $1.1 billion.
The Launch and Aftermath
- YZY’s price fluctuated from an all-time high of $3.16 to between $0.95 and $1.30.
- Allegations of insider trading and a contentious lawsuit waiver raised concerns among investors.
- The website's waiver prevents buyers from joining class action lawsuits against the project.
- Investors can opt-out of this provision within 30 days of accessing the website.
Insider Ownership Concerns
- Conor Grogan from Coinbase estimated that 94% of YZY is owned by insiders, with 87% held in one multisig wallet.
- Distribution details indicate 20% for public supply, 10% for liquidity, and 70% for Yeezy Investments LLC.
- On-chain analysis showed that addresses labeled as 'public supply' could sell at any time.
- Kanye added 30 million YZY, valued at $34 million, to the liquidity pool, indicating potential selling strategies based on price movements.
Investor Losses
- A report indicated that most wallets holding YZY are currently at a loss, with 56,050 addresses trading the token in a short span.
- 44.9% of these wallets engaged in one-sided transactions, mostly resulting in losses.
- Only 38.07% of two-way transaction addresses reported profits, with minimal instances exceeding $10,000.
- Over 60% of participants are in a loss position, with some individuals reporting losses over $1 million.