Over 51,000 traders suffered losses after Kanye West launched his memecoin, underscoring the risks of investing in celebrity-backed tokens with no real technological value.
The YZY token, tied to Kanye West and launched on the Solana blockchain on August 21, initially surged 1,400% within its first hour before plummeting more than 80% in value.
Out of 70,200 investors, over 51,800 ended up in the red, with three traders losing more than $1 million, according to blockchain analytics platform Bubblemaps.
“Meanwhile, 11 wallets made $1M+,” Bubblemaps noted in a post on X.
While the majority of traders faced significant losses, just 11 out of 70,000 wallets turned a profit of over $1 million, and 99 wallets earned more than $100,000, highlighting the high-risk nature of celebrity-endorsed meme tokens lacking real blockchain utility.
Meanwhile, the YZY token has dropped more than 80% from its all-time high and is now trading at $0.5515, with only 19,531 traders still holding the token, according to blockchain intelligence platform Nansen.
Former kickboxing champion Andrew Tate was among those trying to capitalize on the rapper-backed token. Tate reportedly opened a 3x leveraged short position on YZY, resulting in a $700,000 loss on the Tate-linked Hyperliquid account, Cointelegraph reported Friday.
Hayden Davis “sniped” the YZY token launch, pocketing $12 million, according to Bubblemaps
Following the YZY token episode, blockchain analytics platform Bubblemaps highlighted Hayden Davies—co-creator of the Official Melania Meme (MELANIA) and the Libra token—as a potential insider.
Davies regained access to his funds on August 21, after a judge unfroze $57.6 million in USDC stablecoins linked to the Libra token controversy, Cointelegraph reported.
“Despite the combined efforts of investigators, builders, and communities, the same individuals keep orchestrating the same scams,” Bubblemaps wrote in a Wednesday post on X, adding:
“The next day, Davis (Kelsier) sniped the YZY launch and made $12M.”
“Naseem: A network of snipers linked to Naseem—known for making $100 million on TRUMP—were the first to purchase YZY. These snipers consistently get in first, generating millions,” the platform added.
Although celebrity endorsements often spark surges in retail interest, most of these tokens fail to gain lasting traction or achieve large-cap status.
Since June 2024, over 30 celebrity-backed tokens launched on Solana have dropped at least 73.23% in value. Celebrities promoting these tokens included 50 Cent, Caitlyn Jenner, Iggy Azalea, and soccer legend Ronaldinho Gaúcho.
Andrew Tate also joined the Solana memecoin frenzy on June 7, 2024, endorsing more than 10 tokens—most of which lost roughly 99% of their value shortly after his promotion.
