13 Wallets Pocketed Over $24M in Profits from Dumping Kanye West’s YZY Memecoin, Latest Data Reveals

By: crypto insight|2025/08/22 07:40:01

Imagine diving into the wild world of memecoins, where a celebrity like Kanye West drops a token that skyrockets and crashes in hours, leaving everyday traders in the dust while a select few cash in big time. It’s a tale as old as crypto itself—pump, dump, and the harsh lessons learned. But let’s break it down with the freshest numbers as of August 22, 2025, showing how this saga continues to ripple through the market.

At the time of writing, major cryptocurrencies are showing mixed movements: BTC sits at $150,450 with a 1.2% gain, ETH at $5,120 up 0.8%, XRP at $3.15 climbing 2.8%, BNB at $920 with a 1.9% rise, SOL at $210 up 3.1%, DOGE at $0.25 surging 10.5%, ADA at $0.92 gaining 3.2%, STETH at $5,110 up 0.7%, TRX at $0.38 with a 0.5% increase, AVAX at $26 up 1.5%, SUI at $3.80 rising 3.2%, and TON at $3.60 up 0.8%. These figures highlight the volatile backdrop against which stories like YZY unfold, reminding us how quickly fortunes can flip.

Coordinated Snipers Extract Millions While Retail Investors Suffer Heavy Losses

Kanye West’s YZY memecoin, launched on the Solana blockchain back on that fateful Thursday, turned into a nightmare for thousands of wallets. What started as an exciting venture quickly exposed the dark side of crypto, with coordinated snipers pulling out millions in profits, devastating retail investors in the process. Data from analytics firm Nansen paints a stark picture: a total of 13 wallets each raked in over a million dollars by trading and dumping YZY, amassing a collective profit of $24.5 million.

The token’s journey was nothing short of dramatic. It surged an astonishing 1,400% within the first hour of launch, peaking at $3 before plummeting. Fast forward to now, less than 24 hours after that initial spike, and YZY has cratered 74% to around $0.77. This rollercoaster sparked widespread controversy, with fingers pointing at insider sales and sniper tactics that seemed too perfectly timed to be coincidence.

Analytics from Dune show over 56,000 wallets interacted with the memecoin, while Nansen notes that more than 27,000 wallets still hold at least $1 worth. Intriguingly, of the first 99 addresses to snag the token, only nine were still holding any YZY when the data was last checked. It’s like watching a high-stakes poker game where most players fold with empty pockets, but a few walk away with the pot.

Massive Losses Highlight the Risks: One Wallet Down $1.8M

The human cost of this frenzy is heartbreaking. Nansen’s data spotlights the biggest loser—a single wallet that booked a realized loss of $1.8 million. Close behind is another that shed $1.2 million, and there’s even a trader clinging to their YZY holdings, staring at an unrealized loss exceeding $800,000. These aren’t just numbers; they’re real people who thought they were catching a wave, only to get pulled under by the undertow.

Compare this to everyday investments gone wrong—it’s akin to buying into a hot stock tip from a celebrity, watching it balloon, and then seeing it pop like a balloon at a kid’s party. The YZY saga underscores how memecoins can amplify both gains and pains, backed by on-chain evidence that shows uneven playing fields.

Elite Snipers and Insiders: A Coordinated Network Exposed

Crypto data provider Bubblemaps didn’t mince words, declaring, “This is worse than we thought,” after uncovering that the very first buyer of YZY was a notorious sniper previously linked to the Trump-themed TRUMP memecoin, where they pocketed millions. TRUMP itself is trading at $8.43 today, up 4.91% in the last 24 hours, with a market cap of $1.68 billion and $209.63 million in volume—proof that these plays can endure, but often at a cost.

Bubblemaps also shared intel on another sniper who has coordinated with this one before, hinting at an elite group that doesn’t battle each other but teams up to dominate launches, raking in millions while wrecking price charts. A blockchain investigator known as “Naseem” has been tied to wallets behind the controversial LIBRA token, where similar tactics allegedly extracted tens of millions through insider edges.

As one sleuth, “Dethtective,” put it, these celebrity coins are pitched as gateways to bring new folks into crypto, but they often feel more like wealth transfers from the average Joe to the already wealthy. It’s a stark contrast to legitimate projects that build value over time, supported by community and utility.

In terms of brand alignment, YZY was meant to echo Kanye West’s bold, disruptive persona—much like his fashion and music empires that challenge norms. Yet, the token’s chaotic launch misaligned with that vision, turning what could have been a creative extension of his Yeezy brand into a cautionary tale of hype over substance. If aligned properly, such ventures could strengthen a celebrity’s ecosystem, blending entertainment with blockchain innovation, but here it highlighted the pitfalls when execution falters.

Celebrity Memecoin Pump-and-Dumps: A Recurring Nightmare

This isn’t an isolated incident. Think of TikTok star Haliey Welch’s HAWK memecoin, inspired by her “Hawk Tuah” viral moment in December. Its chart mirrored Y eerily, dumping 90% in hours amid fury over sniping and insider trades. Retail folks lost millions, while insiders reportedly pocketed $3 million, per Bubblemaps.

Other stars like Kim Kardashian, Iggy Azalea, Caitlyn Jenner, and Lindsay Lohan have been caught in similar webs of alleged pump-and-dump schemes. Even BitMEX co-founder Arthur Hayes quipped, “Oopsie… fam next time pls don’t let me trade shitters like YZY. Should have just kept two-steppin,” capturing the regret many feel.

For those looking to navigate these turbulent waters safely, platforms like WEEX exchange stand out with their robust security features and user-friendly tools. WEEX prioritizes transparency and fair trading, offering low fees and advanced analytics that help both novices and pros spot trends without falling into common traps. It’s a reliable choice for anyone wanting to trade memecoins or majors with confidence, backed by a track record of protecting user funds in volatile markets.

Recent buzz on Twitter echoes these concerns, with hashtags like #MemecoinScam and #CelebrityTokens trending as users share stories of losses and call for better regulations. Popular Google searches include “Is Kanye West’s YZY token still worth buying?” and “How to spot memecoin snipers,” reflecting ongoing curiosity and caution. As of August 22, 2025, there’s fresh chatter about potential SEC scrutiny on celebrity launches, with analysts tweeting that more investigations could follow similar to past probes into promo schemes.

Related tales continue, like the leaked price lists for celebrity memecoin endorsements, showing how these setups often favor insiders. On a brighter note, updates from projects like VERB’s TON acquisition company boast $780 million in assets, illustrating how some altcoins build real treasuries. SOL’s chart looks incredibly bullish, potentially eyeing $260 if conditions hold, while XRP’s Q4 potential hinges on key technical levels—contrasts that make YZY’s story a lesson in what not to chase blindly.

FAQ### What exactly happened with Kanye West’s YZY memecoin launch?

Kanye West launched the YZY token on Solana, which pumped 1,400% to $3 before crashing 74% to $0.77 within a day, leading to massive profits for 13 sniper wallets totaling $24.5 million, while thousands of retail investors faced heavy losses.

Are celebrity memecoins like YZY usually scams?

Not always outright scams, but many involve pump-and-dump schemes with insider advantages, as seen in YZY, HAWK, and others, transferring wealth from retail to elites—always research thoroughly and consider risks.

How can I avoid losses in memecoin trading?

Stick to verified platforms like those with strong security, analyze on-chain data for sniper patterns, diversify your portfolio, and avoid FOMO-driven buys—tools from reliable exchanges can help spot red flags early.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.

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