- Yeezy Money (YZY) reached a $3B market cap before plummeting over 60% in mere hours.
- Top wallets possess almost 90% of the supply, raising concerns over a potential rug pull.
- Insider trades transformed $450K into $1.5M on launch day.
Kanye West’s audacious entry into the realm of digital currencies has taken a sudden twist.
His Solana-based cryptocurrency, Yeezy Money (YZY), launched with considerable excitement, briefly driving its market cap to $3 billion.
However, shortly after, the value of YZY collapsed, leaving investors facing losses exceeding 60%.
The debut of Yeezy Money featured a blend of celebrity influence, technical curiosity, and immediate controversy.
Kanye West, who has rebranded as Ye, promoted the token via his official account with a brief clip stating “The official Yeezy token just dropped.”
But the aftermath was characterized by extreme volatility.
From $3 billion peak to dramatic decline
Moments after its launch, the YZY token skyrocketed to a market cap exceeding $3 billion.
At one point, it traded above $3 per token, igniting excitement on Solana-based exchanges.
The buzz attracted influential figures within the crypto community. Arthur Hayes, co-founder of BitMEX, openly acknowledged buying into YZY, initially jesting that he hoped West wouldn’t “rug” him.
Hours later, as prices fell, Hayes admitted to making a poor decision, stating he shouldn’t have traded “shitters” like YZY.
Oopsie … fam next time pls don’t let me trade shitters like $YZY. Should have just kept two-steppin. pic.twitter.com/6oiKLNv9Mo
— Arthur Hayes (@CryptoHayes) August 21, 2025
Other traders, including leverage expert James Wynn, also engaged, showing how even experienced market players can get swept up in celebrity-driven excitement.
The YZY token surge was notably brief. Within three hours, it lost over 65% of its value, dropping below $1.20.
By Thursday evening, the coin plummeted even further. CoinMarketCap indicated it was trading at approximately $0.99, down 61% in a single day.
This crash left its market cap hovering around $298 million, a mere fraction of the peak it had achieved just hours prior.
The substantial trading volume illustrated the volatility. Within the initial 24 hours, YZY recorded nearly $1 billion in trades, surging by over 37,000% in volume.
For many traders, these fluctuations highlighted the perils of a token built on celebrity hype rather than proven utility.
Concerning wallet activity
On-chain analysis quickly uncovered alarming trends. Data reveals that the leading six wallets controlled nearly 90% of the total supply.
One multisignature wallet alone represented 87% before distribution, leading some critics to warn of a definitive “rug pull” scenario.
LookOnChain, a blockchain analytics company, identified several wallets that seemed to have preferential access to the token prior to its public sale.
One insider spent roughly $450,000 in USDC to secure 1.29 million YZY at a low price, flipping the assets for over $1.5 million within hours.
An insider spent 450K $USDC to buy 1.89M $YZY at $0.24 via 2 wallets, then sold 1.59M $YZY for 3.37M $USDC at $2.12.
He still holds 303,425 $YZY($510K), with a profit of over $3.4M (+760%).
To ensure he got in first, one wallet even paid 129 $SOL($24K) in priority fees.… pic.twitter.com/HaUeEjcmSC
— Lookonchain (@lookonchain) August 21, 2025
For retail investors who joined later, the situation was starkly different, with many losing substantial amounts after purchasing the wrong contracts or chasing inflated prices.
Kanye’s evolving viewpoint on cryptocurrency
The YZY launch has attracted attention due to Kanye West’s prior statements on digital currencies.
Earlier this year, Kanye criticized memecoins as scams that prey on fans through hype.
He even mentioned declining a $2 million offer to promote a counterfeit cryptocurrency, cautioning that such schemes “scam the public out of tens of millions of dollars.”
Kanye’s choice to endorse Yeezy Money, therefore, was unexpected.
The official site marketed it as the cornerstone of a new financial ecosystem, complete with Ye Pay, a payment processor aimed at rivaling conventional card networks, and the YZY Card, intended for spending in both crypto and fiat.
The platform claimed to be “a new economy, built on chain,” though industry observers noted that no functional products were presented alongside the promises.
Despite the upheaval, Yeezy Money has secured a cultural moment.
Similar to Donald Trump’s NFT collections or Iggy Azalea’s token launches, West’s foray into cryptocurrency signifies the increasing intersection of pop culture and digital finance.
Solana also experienced a boost, rising over 2% as investors pursued the excitement.
