According to data from Nansen, 13 wallets each made over a million dollars trading the Kanye West-linked YZY token.
The rapper launched the YZY token on Solana on Thursday, with the top 13 wallets generating a total profit of $24.5 million as they cashed out.
The YZY token surged 1,400% within an hour of its launch, reaching a peak price of $3 before falling sharply again, as reported by Nansen. Within 24 hours of the spike, the token has declined 74% to approximately $0.77. The launch has been controversial, with many commentators raising concerns about alleged insider trading and sniping.
A Dune Analytics query showed that over 56,000 wallets interacted with the memecoin, while Nansen indicated that more than 27,000 wallets still held over $1 worth of it.
Additionally, data indicated that of the first 99 addresses that purchased the token, only nine were still holding any YZY as of this writing.
YZY holder faces a $1.8 million loss
According to Nansen, the biggest loss was incurred by a wallet that realized a $1.8 million loss, followed closely by another wallet that lost $1.2 million. One trader remains holding YZY tokens with an unrealized loss exceeding $800,000.
An elite group of snipers and insiders
Crypto data provider Bubblemaps remarked, “This is worse than we imagined,” after identifying the first buyer as a sniper who previously profited from the Trump (TRUMP) memecoin.
It also noted that it received intel about another sniper who has previously collaborated and shared funds with this individual.
“There’s an elite group of snipers who don’t compete but coordinate, making millions destroying charts.”
Additionally, a blockchain investigator has connected the sniper, known as “Naseem,” to another series of wallets involved in the contentious LIBRA token, implying that the same operator has extracted tens of millions using insider information.
Related: Kanye West YZY sniper wallet linked to $21M LIBRA extraction scheme: Analysts
“These celebrity coins are typically described as a method to onboard more participants,” stated the investigator known as “Dethtective,” adding, “To me, it appears more like a transfer of wealth that benefits the wealthy even further.”
Celeb memecoin pump and dumps
This isn’t the first occasion a celebrity has launched a memecoin that resulted in controversy over its price volatility.
TikTok influencer Haliey Welch introduced a memecoin named HAWK in December, inspired by her notorious “Hawk Tuah” catchphrase.
The chart pattern was strikingly similar to YZY’s, as the memecoin plummeted by 90% in mere hours, inciting outrage and accusations of sniping and insider trading. Retail traders lost millions while a group of insiders pocketed $3 million, according to Bubblemaps.
Other celebrities, including Kim Kardashian, Iggy Azalea, Caitlyn Jenner, and Lindsay Lohan, have been associated with alleged memecoin pump-and-dump schemes.
“Oopsie… fam next time please don’t let me trade shitters like YZY. Should have just kept two-steppin,” commented BitMEX co-founder Arthur Hayes.
Magazine: Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked
