YZY Token Launch Results in $8.2 Million Loss for Retail Traders
The launch of the YZY token, linked to Ye (formerly Kanye West), has resulted in significant losses for over 70,000 wallets. Key details include:
- YZY debuted last week as part of a “YZY Money” ecosystem.
- Insider trading and low liquidity allowed early investors to profit while most suffered losses.
- 51,800 addresses lost $1 to $1,000; 5,269 lost $1,000 to $10,000; 1,025 lost $10,000 to $100,000.
- 108 wallets faced six-figure losses, with three traders losing over $1 million each.
- Only 11 addresses made profits of $1 million or more, indicating uneven distribution of gains.
- The crowd overall is down approximately $8.2 million despite some insiders profiting significantly.
- 70% of the token supply was allocated to Yeezy Investments LLC, with only 20% sold publicly.
- Current market cap is $544.9 million, down from an initial peak of $3 billion, with daily trading volume reduced to $1.8 million.
This situation reveals structural flaws in the token's distribution model, impacting retail investors disproportionately.