YZY Token Launch Leaves Most Traders in Losses While Early Investors Profit
The Solana-based YZY token, reportedly associated with rapper Ye (formerly Kanye West), has inflicted losses on the majority of buyers, while a small group of early investors and insiders reaped significant gains, according to blockchain analytics platform Bubblemaps.
Released last week as part of the “YZY Money” ecosystem—including payment rails and a branded card—the token’s debut faced thin liquidity and intense speculative trading. On-chain data suggest whales and early-access wallets captured the majority of profits, leaving the broader public to absorb most losses.
Bubblemaps’ analysis shows:
- 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 suffered six-figure losses, including three traders losing over $1 million each
In contrast, only 11 addresses earned over $1 million, representing 0.015% of all wallets. Another 99 addresses gained over $100,000, while 2,541 wallets netted at least $1,000. Overall, the wider crowd is down approximately $8.2 million, highlighting the extreme concentration of gains among insiders.
Structural factors contributed to the imbalance. Around 70% of the token supply was allocated to Yeezy Investments LLC under Jupiter’s vesting system, 20% went to public sales, and 10% was reserved for liquidity. The pool, seeded solely with YZY tokens and lacking a stablecoin pairing, made the market vulnerable to rapid withdrawals—a situation reminiscent of Argentina’s short-lived LIBRA token.
Early-access wallets captured substantial profits. For example, address 6MNWV8 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 valued at about $600,000, netting an estimated $1.5 million gain.
As of Thursday, YZY’s market capitalization has fallen to $544.9 million, with liquidity at $42.7 million and 26,590 holders, down sharply from initial valuations that briefly approached $3 billion. Daily trading volume has dropped to $1.8 million, per DEXTools data.
The YZY token’s trajectory mirrors patterns seen in many celebrity-backed memecoins: unless investors are early participants or insiders, the odds of generating significant returns are minimal.
