Former kickboxing champion and contentious influencer Andrew Tate has joined the ranks of celebrities investing in Kanye West’s newly launched YZY token, but his investments are already facing significant losses.
A wallet associated with Tate initiated a 3x leveraged short position on the newly launched YZY token at $0.85, currently reflecting a $16,000 loss on the trade.
According to blockchain analytics platform Lookonchain, Tate “doesn’t appear to excel in perps trading,” with cumulative losses approaching $700,000 on a single Hyperliquid account. “To date, he has completed 80 trades on #Hyperliquid — only 29 of which were profitable (win rate: 36.25%) — resulting in total losses of $699K,” they noted in a Friday X post.
The YZY token, introduced by the rapper on Solana on Thursday, saw the top 13 wallets collectively profiting $24.5 million as they sold off the token, which surged 1,400% within the first hour before plummeting more than 74% thereafter.
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As celebrity interest in cryptocurrencies increases, numerous influencers are facing financial losses, highlighting that not all financial advice or investment endorsements should be considered equally.
This loss comes more than a year after Tate encountered insider trading allegations regarding his memecoin, the Daddy Tate (DADDY) token, where insiders acquired 30% of the supply at launch prior to Tate promoting the token on X, as reported by Cointelegraph.
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Most Andrew Tate-endorsed memecoins crashed by 99%
Tate joined a surge of celebrities endorsing Solana memecoins on June 7, 2024, supporting over 10 tokens known for lacking intrinsic value.
Most of these tokens plummeted around 99% of their value shortly after Tate’s endorsement, with several reportedly having up to 30% insider supply allocation, according to a warning from Bubblemaps in an X post in October 2024.
These included Roost (ROOST), the Germany Token (GER), Fuck Tristan (FTRISTAN), TopG (TOPG), RNT (RNT), and Daddy Tate (DADDY).
Over 30 celebrity-endorsed tokens launched on Solana in June 2024 have experienced price declines of no less than 73.23%.
Other celebrities promoting Solana-based meme tokens include 50 Cent, Caitlyn Jenner, Iggy Azalea, and soccer icon Ronaldinho Gaúcho.
The UFC contender Khamzat Chimaev-linked Smash (SMASH) token also faced insider allegations when it was revealed that up to 78% of the token’s supply was purchased by team and developer-related wallets, as reported by Cointelegraph in July 2024.
Three days after the token’s launch, Chimaev’s manager, Majdi Shammas, claimed that the fighter “wasn’t involved” with the SMASH memecoin and “[knows] just as little as you do,” alleging that he promoted the coin without the fighter’s consent.
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