Kanye West’s YZY token hits $3B in 40 mins but crashes after insider sale concerns shake traders and markets.
Kanye West’s YZY token reached a $3 billion market value within 40 minutes of its launch on Solana, before losing much of its gains within hours. The sharp rise and fall have raised questions after blockchain data suggested a large share of the supply was controlled by insiders.
Rapid Market Surge and Sudden Drop
The YZY token was introduced on the Solana blockchain with strong promotion from West through his social media platforms. Within less than an hour, trading on decentralized exchanges pushed its market capitalization to nearly $3 billion. Traders rushed to purchase the token, with some investors paying high network fees to secure early access.
However, the surge did not last. Within a day, the token’s market value fell steeply, at one point standing near $137 million.
Data from blockchain analytics firms indicated that the drop resembled earlier boom-and-bust events on the Solana blockchain. This is where celebrity or hype-driven tokens rose quickly before experiencing heavy selloffs. The decline left many retail buyers with losses, while early sellers made large profits.
Insider Holdings Raise Questions
Concerns grew when on-chain analysis showed that insiders held about 94% of the total token supply at launch.
Reports revealed that a single multisignature wallet controlled nearly 87% before the supply was spread across other addresses. Analysts said this structure left small traders with limited chances to benefit from the early rally.
In addition, Lookonchain reported that only YZY tokens were initially added to the liquidity pool. This setup allowed developers to change liquidity without prior notice, creating an advantage for large holders.
One wallet reportedly bought the wrong token in error and lost $710,000, but it later regained funds after securing the correct one. Observers said such movements pointed to unusual insider activity during the launch.
YZY has dropped below $1.
Whale 6ZFnRH spent 1.55M $USDC to buy 996,453 $YZY at $1.56, then sold for 1.05M $USDC at $1.06—losing $500K in less than 2 hours.https://t.co/VrSJBcpmQB pic.twitter.com/YsOjjj0FqL
— Lookonchain (@lookonchain) August 21, 2025
Trading Losses and Market Pattern
The trading environment for YZY was marked by high fees and sharp losses. A base trading fee of 1% was built into transactions, while dynamic adjustments pushed fees closer to 2.7%.
Slippage added another 4–5%, which meant traders could face about 10% costs on entry and exit. Despite this, volume in the early hours remained strong, generating millions in fees for liquidity providers.
Some investors made gains, with one early buyer earning $3.4 million after paying $24,000 in Solana network fees to secure tokens.
Others faced steep losses. One wallet spent 1.55 million USDC on YZY but sold just hours later at a lower price, losing around $500,000. Many traders experienced similar outcomes as the token fell to near $1.
The launch followed a pattern already seen on Solana’s memecoin markets. In past cases, celebrity-backed tokens saw quick gains followed by heavy declines.
Analysts compared YZY’s fall with previous projects, such as the HAWK memecoin, which lost most of its value soon after release and later attracted regulatory attention.
