Andrew Tate, the former kickboxing champion and polarizing influencer, has recently entered the space of Kanye West’s newly introduced YZY token, but his investments are currently facing significant losses.
A wallet associated with Tate initiated a 3x leveraged short position on the YZY token, linked to Kanye, at a price of $0.85, leading to a loss of $16,000 on this trade.
Source: Lookonchain
The YZY token debuted on Solana on Thursday, with the top 13 wallets making a combined profit of $24.5 million by liquidating their holdings, witnessing an initial surge of 1,400% in just the first hour before plummeting over 74% afterwards.
Related: Ether trader nearly wiped out after epic run from $125K to $43M
As more celebrities engage with cryptocurrencies, many influencers are experiencing financial setbacks, indicating that not all investment endorsements should be taken at face value.
This losing trade follows allegations of insider trading against Tate related to his memecoin, the Daddy Tate (DADDY) token, where insiders acquired 30% of the supply at launch prior to Tate’s promotional efforts on X, as reported by Cointelegraph.
Related: $1.6B Bitcoin whale shifts another $113M BTC into $240M Ether long
Most Andrew Tate-endorsed memecoins crashed by 99%
Tate was among the celebrities who endorsed Solana memecoins on June 7, 2024, promoting more than 10 tokens known for lacking intrinsic value.
Following Tate’s endorsements, most of these tokens plummeted approximately 99% in value, with several tokens allegedly having up to 30% insider supply allocation, as warned in an October 2024 post by Bubblemaps.
These included Roost (ROOST), the Germany Token (GER), Fuck Tristan (FTRISTAN), TopG (TOPG), RNT (RNT), and Daddy Tate (DADDY).
GER/SOL, 1-day, all-time chart. Source: Bubblemaps
Over 30 celebrity-endorsed tokens were launched on Solana in June 2024, with price declines of at least 73.23% observed.
Other celebrities who have promoted Solana-based meme tokens include 50 Cent, Caitlyn Jenner, Iggy Azalea, and soccer icon Ronaldinho Gaúcho.
Source: Instagram
The Smash (SMASH) token, linked to UFC contender Khamzat Chimaev, was also entangled in insider allegations when it was revealed that up to 78% of the token’s supply was allocated to team and developer-related wallets, as reported by Cointelegraph in July 2024.
Just three days post-launch, Chimaev’s manager, Majdi Shammas, asserted that the fighter “wasn’t involved” with the SMASH memecoin and “[knows] just as little as you do,” claiming he was promoted without the fighter’s consent.
Magazine: Altcoin season 2025 is almost here… but the rules have changed
