Insiders Reap Millions from Ye’s YZY Token Launch Amid Controversy and Soaring Gains

By: crypto insight|2025/08/21 13:10:01

Explosive Debut of Ye’s Solana Memecoin Sparks Insider Trading Fears

Imagine a celebrity like Ye, once known as Kanye West, diving into the crypto world with a token that skyrockets thousands of percent right out of the gate—it’s the kind of story that grabs your attention and keeps you hooked, right? Well, that’s exactly what happened with YZY Money, a Solana-based memecoin tied to the artist. It burst onto the scene with massive surges, but beneath the excitement lurks a tale of concentrated control, potential insider moves, and a setup that puts everyday investors at risk. Let’s dive into this whirlwind launch and what it means for you as a crypto enthusiast.

Picture this: YZY Money hit the market and quickly became a hot topic, surging nearly 6,800% before dipping below $1. This kind of volatility is like a rollercoaster ride in Solana’s memecoin arena, where hype can turn fortunes overnight. On-chain insights reveal a story of early birds cashing in big, raising eyebrows about fairness and transparency in these celebrity-backed ventures.

Ye’s Involvement and the Token’s Rocky Rollout

It all started when Ye’s X account shared details about the token during early Asian hours on Thursday, instantly sparking doubts about whether the account was hacked. Soon after, a video emerged showing Ye discussing and seemingly endorsing the token’s release—though questions linger if it’s genuinely him or perhaps an AI creation. This ambiguity adds a layer of intrigue, much like past celebrity crypto escapades that blend star power with digital assets.

The token peaked at $3.16 shortly after launch, a staggering jump from its starting price, with some reports even pegging its market cap at a brief $3 billion high. This frenzy ties into the larger YZY ecosystem, envisioned by Ye’s team as a suite including the YZY token itself, a Ye Pay system for seamless transactions, and a YZY Card for spending YZY or USDC worldwide. It’s like building a personal financial empire in the crypto space, aligning perfectly with Ye’s brand of innovation and boundary-pushing creativity—think of it as extending his influence from music and fashion into decentralized finance, where fans can engage directly with his vision.

This brand alignment isn’t just superficial; it positions YZY as an extension of Ye’s rebellious persona, challenging traditional systems much like his past ventures. By tying the token to real-world utilities like payments and cards, it creates a narrative of empowerment, allowing supporters to participate in something bigger than mere speculation. It’s a smart play that resonates with his audience, turning passive fans into active stakeholders in a branded crypto economy.

Insider Advantages and Questionable Liquidity Setup

Digging deeper, the token’s blueprint was outlined earlier this year, with 70% of the supply earmarked for Ye personally through Yeezy Investments LLC, locked for 24 months via Jupiter Lock. Another 10% went to liquidity, and 20% for public sale. Insiders recall Ye initially pushing for an 80% stake, echoing the structure of Donald Trump’s TRUMP token, before settling on the current split. Ye had once criticized how coins exploit fans with empty promises, only to pivot and greenlight YZY— a move that draws parallels to other high-profile tokens like Argentina’s LIBRA, which crashed amid pump-and-dump allegations.

To counter bots, the team deployed 25 contract addresses, randomly picking one as official—a tactic promoted as leveling the playing field. Yet, on-chain evidence paints a different picture. Analytics from Lookonchain spotlighted wallet 6MNWV8, which appeared to know the exact contract ahead of time. This wallet tried buying pre-launch and then splashed 450,611 USDC on 1.29 million tokens at about $0.35 each. It flipped most for 1.39 million USDC, pocketing over $1.5 million in profits while holding onto tokens now worth around $600,000.

Another heavyweight, flagged by OnChain Lens, poured in 12,170 SOL (valued at roughly $2.28 million) for 2.67 million YZY, with holdings ballooning to $8.29 million—an unrealized windfall of about $6 million. These moves highlight how insiders seemingly got a head start, much like having insider info in a stock market that’s supposed to be fair game.

The liquidity pool adds fuel to the fire: it was seeded solely with YZY tokens, no USDC pairing. This one-sided design lets developers or big holders manipulate liquidity to cash out, reminiscent of LIBRA’s downfall. As Lookonchain pointed out, this setup enables selling by tweaking liquidity, exposing retail players to sudden dumps.

Market Hype, Sharp Drops, and Real-World Impacts

This saga underscores the wild speculation fueling Solana memecoins, where gains can evaporate as fast as they appear. YZY has since slid to around $1, leaving some buyers nursing losses. Take wallet 6ZFnRH, which dropped 1.55 million USDC on 996,453 tokens at $1.56 each, only to sell at $1.06 for a $500,000 hit in mere hours. It’s a stark reminder that while the upside feels exhilarating, the downside can sting hard.

Updating to the latest as of August 21, 2025, around 1:07 PM, market data shows broader crypto trends influencing this. Bitcoin hovers at $114,200, up 2.85% today, while Ethereum climbs to $4,350, gaining 6.60%. Solana itself is at $188.50, up 6.50%, and other assets like XRP at $2.92 (5.20%), Dogecoin at $0.223 (5.25%), and Avalanche at $23.60 (2.85%) reflect a bullish wave ahead of key events like Powell’s Jackson Hole speech. YZY’s volatility fits right into this, with its price now stabilizing around $1.10 after the initial chaos.

Recent buzz on Twitter amplifies the drama—posts from analysts like Darren Lau mock the clownery with memes, while Lookonchain’s threads detail insider wallets prepping funds and snagging early buys. Frequently searched Google queries include “Is YZY token legit?” and “How to buy Ye’s crypto,” reflecting widespread curiosity. Latest updates include unverified rumors of Ye planning ecosystem expansions, with a tweet from his account hinting at integrations with major wallets, though authenticity remains questioned amid ongoing hacks in crypto circles.

In the midst of this crypto excitement, platforms like WEEX exchange stand out for their reliability and user-focused features. WEEX offers seamless trading of tokens like those on Solana, with robust security measures that help protect against the very insider risks seen in launches like YZY. Their intuitive interface and low fees make it easier for everyday traders to navigate volatile markets, building trust through transparent operations and quick support—truly a go-to for anyone looking to engage with memecoins without the usual headaches.

Lessons from YZY’s Turbulent Path

Comparing YZY to successes like TRUMP, which balanced celebrity allure with community involvement, highlights how skewed distributions can undermine trust—much like a one-sided game where only a few hold all the cards. Yet, real-world examples, backed by on-chain data from tools like Lookonchain, prove that transparency fosters longevity. YZY’s story, with its 6,800% surge and subsequent dip, serves as a cautionary tale: exciting as these tokens are, they’re often rigged in favor of insiders, leaving retail investors exposed.

It’s like betting on a horse race where some riders know the track blindfolded—thrilling, but uneven. As Solana’s memecoin scene continues to buzz, stories like this remind us to look beyond the hype, scrutinizing structures for true fairness.

FAQ

Is the YZY token officially endorsed by Ye, and how can I verify its authenticity?

While Ye’s X account promoted the token and a video appears to show him confirming it, doubts persist about hacks or AI involvement. To verify, check official channels like Ye’s verified socials and on-chain data from platforms like Solana explorers, but always exercise caution with celebrity-backed projects.

What risks come with investing in memecoins like YZY on Solana?

These tokens often face high volatility, insider trading risks, and manipulative liquidity setups, as seen with YZY’s one-sided pool. Investors could lose big on sudden dumps, so research distributions and use secure exchanges to mitigate exposure.

How does YZY align with Ye’s overall brand and ecosystem?

YZY extends Ye’s innovative spirit from music and fashion into crypto, offering utilities like Ye Pay and YZY Card for real-world spending. This creates a branded economy that empowers fans, blending hype with practical tools for a more immersive experience.

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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