Former kickboxing champion and controversial influencer Andrew Tate has become one of the latest celebrities to invest in Kanye West’s newly launched YZY token, but his investments are already incurring heavy losses.
A wallet address associated with Tate opened a 3x leveraged short position on the YZY token at $0.85, currently showing a loss of $16,000.
Blockchain analytics platform Lookonchain reported on Friday that Tate “doesn’t seem to excel at perps trading,” with losses nearing $700,000 on this single Hyperliquid account. “So far, he’s made 80 trades on #Hyperliquid — only 29 were profitable (win rate: 36.25%) — with total losses of $699K,” they noted.
The YZY token, launched on Solana on Thursday, saw the top 13 wallets collectively profit $24.5 million as they sold the token, which skyrocketed 1,400% within its first hour but later plummeted over 74%.
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As celebrity interest in cryptocurrencies grows, many influencers are experiencing losses, indicating that not all financial advice or endorsements should be taken at face value.
This recent trade comes over a year after Tate faced insider trading allegations related to his memecoin, the Daddy Tate (DADDY) token, which saw insiders acquire 30% of the supply at launch before Tate began promoting it on X, as reported by Cointelegraph.
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Most Andrew Tate-endorsed memecoins crashed by 99%
Tate joined the wave of celebrities endorsing Solana memecoins on June 7, 2024, endorsing over 10 tokens that lacked intrinsic value.
Most of these tokens lost about 99% of their value soon after his endorsement, with multiple tokens reportedly having up to 30% insider supply allocation, as warned by 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 legend Ronaldinho Gaúcho.
The Smash (SMASH) token, linked to UFC contender Khamzat Chimaev, also faced insider allegations, as it was revealed that up to 78% of its supply was acquired by team and developer-related wallets, as reported by Cointelegraph in July 2024.
Three days post-launch, Chimaev’s manager, Majdi Shammas, asserted that the martial artist “wasn’t involved” with the SMASH memecoin and “[knows] just as little as you do,” claiming he promoted it without Chimaev’s input.
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