Kanye West’s YZY token crashed over 80% after launch, leaving 51,000 traders with $74M in losses while insiders profited.
The crypto market witnessed yet another cautionary tale with the collapse of Kanye West’s YZY token.
This token was launched on the Solana network on August 21 and skyrocketed by 1,400% within its first hour before crashing more than 80%.
Blockchain analytics firm Bubblemaps recently reported that out of 70,200 wallets trading the YZY token, more than 51,800 lost money. The combined losses reached around $74 million.
How the YZY Token Surged and Collapsed
The token’s initial surge drew thousands of retail investors chasing quick gains. At its peak, YZY traded close to $3. However, the traction vanished almost immediately as early buyers and insiders began selling. This wave of selling sent the price tumbling to around $0.55 within days.
The updated $YZY numbers are worse than we thought
70,000+ total traders
> 51,862 lost $1–$1k
> 5,269 lost $1k–$10k
> 1,025 lost $10k–$100k
> 108 lost $100k–$1M
> 3 lost $1M+Meanwhile, 11 wallets made $1M+ pic.twitter.com/I9ZaBJepAM
— Bubblemaps (@bubblemaps) August 27, 2025
Many participants found the collapse to be brutal. Some investors lost life-changing sums in a matter of hours. Bubblemaps noted that three traders lost over $1 million each, while 99 wallets managed to secure profits of more than $100,000.
Insiders Cash Out Millions
Bubblemaps pointed to suspicious trading patterns during the token launch. Hayden Davies, who was previously linked to the Official Melania Meme (MELANIA) token and the Libra scandal, was identified as one of the early buyers.
Reports indicate that he “sniped” the YZY launch and earned a staggering $12 million.
Another group tied to a trader named Naseem, who was known for making $100 million on the TRUMP token, was among the first to buy YZY. These wallets tend to secure positions before retail traders, and can then sell for large profits while later investors take the losses.
Andrew Tate’s Failed Bet
Former kickboxing champion Andrew Tate also entered the YZY market. He reportedly opened a leveraged short position against the token through his Hyperliquid account. However, the move backfired, leading to a $700,000 loss.
Tate’s failed attempt shows just how volatile these assets are, even for experienced traders.
Amid the turmoil, Kanye West claimed his Instagram account had been hacked and used to promote another fake YZY token. The counterfeit briefly gained traction before losing value. Meanwhile, the official YZY token continued to fall and deepened the confusion among investors even further.
The Trend of Celebrity Tokens
The YZY collapse fits into a much more disturbing pattern. In June of last year, the market saw more than 30 celebrity-endorsed tokens launch on Solana. So far, most have lost at least 73% of their value with celebrities involved, including 50 Cent, Caitlyn Jenner, Iggy Azalea and soccer star Ronaldinho Gaúcho.
what it’s like to buy a celebrity memecoin pic.twitter.com/mD5nlGHKc3
— borovik (@3orovik) August 21, 2025
Overall, despite the many cautionary tales, celebrity memecoin tokens continue to leave investors holding empty bags. This is because the appeal of celebrity tokens taps into massive fan bases to promote tokens that lack development roadmaps or real-world utility.
As a result, they depend almost entirely on speculation, and once hype fades, prices crash.
In all, the YZY token promised profits but ended in massive losses. Over 70,000 traders joined the launch, yet more than 51,000 left in the red. Insiders made millions, while most retail investors absorbed the damage.
