Kanye West’s “YZY Coin” Sparks Hype and Doubts Amid Insider Trading Concerns
U.S. rapper and entrepreneur Ye, formerly known as Kanye West, has established his own Solana-based cryptocurrency...
Quick overview
- Ye, formerly known as Kanye West, has launched a Solana-based cryptocurrency called YZY coin, which initially surged to over $3 billion in value but has since dropped to around $1 billion.
- The YZY project aims to provide consumers with control free from centralized authority and includes plans for a payment processor and a credit card, although it is marketed as a symbolic statement rather than an investment product.
- Concerns have been raised about the legitimacy of YZY coin due to insider trading activities and the concentration of token supply among a few wallets, leading to skepticism about its authenticity.
- Despite the red flags, YZY coin has attracted attention from high-profile traders, highlighting the ongoing risks and uncertainties in the cryptocurrency market.
U.S. rapper and entrepreneur Ye, formerly known as Kanye West, has established his own Solana-based cryptocurrency called YZY coin. The token rose to over $3 billion in value but has since fallen back to around $1 billion.
On Wednesday, West posted on his official X account, “Yeezy Money is here… A new economy built on the blockchain.” The message was accompanied by what appeared to be a wallet address and a link to a trading site. Furthermore, data from analytics website GMGN.Ai shows that YZY’s market valuation now stands at about $2 billion.
https://twitter.com/kanyewest/status/1958346810801697237
Website Claims and Ecosystem Plans
The website cited in his post promotes YZY as a project that provides consumers with control “free from centralized authority.” Additionally, it describes an ecosystem that includes Ye Pay, a payment processor that promises lower fees for businesses, as well as the planned YZY credit card. However, the website also makes it clear that the token is designed only as a symbolic statement of support and not as an investment product.
https://twitter.com/kanyewest/status/1958354070676402285
If verified as legitimate, this move marks a change from West’s earlier attitude toward memecoins. In February, he stated that he would not issue a token since such projects “prey on the fans with hype.” Moreover, he also revealed that he had once been asked for $2 million to promote a fake Ye cryptocurrency on social media. These new announcements now come amid a series of unusual social media posts by the hip-hop artist on X.
Doubts and Red Flags
Following the announcement, many X users immediately questioned whether West’s account had been compromised. In contrast, his official website and online store now list YZY as a payment method, which suggests that the project could indeed be authentic.
Still, on-chain experts have raised concerns and pointed to several warning signs. According to blockchain analytics firm Lookonchain, multiple insider wallets purchased YZY as soon as it launched. One particular wallet, identified as 6MNWV8, made more than $1.5 million by selling YZY that was bought using insider knowledge. Lookonchain further explained that this wallet had access to the contract address even before the official launch.
ye(@kanyewest) launched the $YZY token. Note:
Only $YZY was added to the liquidity pool with no $USDC.
Dev may sell $YZY by adding/removing liquidity, similar to $LIBRA.Multiple insider wallets prepared funds in advance and immediately bought $YZY.
Insider wallet 6MNWV8 knew… pic.twitter.com/qv7nsx0R4J
— Lookonchain (@lookonchain) August 21, 2025
Adding to the concerns, Coinbase Director Conor Grogan highlighted that insiders may control over 94% of the token’s supply. He noted that at one point, a single wallet alone held 87% of all YZY tokens. Industry analysts also warned that the liquidity pool structure gives developers the ability to withdraw tokens whenever they choose.
By my estimation, at least 94% of the new Kanye token is insider owned
-87% of the new Kanye token was owned by a single multisig (now dispersed to multiple wallets)
-3%+ was bought in a single transaction, with size, by assorted (prepared) wallets at market open
-7%+ in LP pic.twitter.com/gokotoI39s— Conor (@jconorgrogan) August 21, 2025
Traders Still Take Risks
Despite these warnings, YZY coin has caught the attention of high-profile cryptocurrency traders. Reports show that one wallet made a profit of $3.4 million by trading on the coin’s sharp volatility.
An insider spent 450K $USDC to buy 1.89M $YZY at $0.24 via 2 wallets, then sold 1.59M $YZY for 3.37M $USDC at $2.12.
He still holds 303,425 $YZY($510K), with a profit of over $3.4M (+760%).
To ensure he got in first, one wallet even paid 129 $SOL($24K) in priority fees.… pic.twitter.com/HaUeEjcmSC
— Lookonchain (@lookonchain) August 21, 2025
Nevertheless, the project’s credibility remains under heavy scrutiny because of West’s inconsistent remarks, the token’s steep price drop from its peak, and the heavy concentration of tokens in insider wallets.
As a result, the launch of YZY coin leaves the crypto world questioning whether this is a genuine new venture or simply another risky celebrity-driven gamble.
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