Rapper Kanye West, now legally generally known as Ye, has formally stepped into crypto. On Wednesday, the enterprise mogul launched YZY, a Solana-based meme coin that briefly touched a $3 billion market cap inside hours of its debut earlier than quickly shedding worth.
The launch, billed by Ye himself as the beginning of “a brand new financial system, constructed on chain,” comes simply months after he publicly dismissed rumors of making a token.
A New Financial system or a Acquainted Scheme?
The token’s rollout has already stirred some controversy, with journalist Colin Wu sharing knowledge from the GMGN buying and selling platform, which allegedly reveals that 90% of its provide is within the palms of simply six wallets, elevating considerations about heavy focus and insider exercise.
Blockchain trackers additionally flagged suspicious liquidity pool setups harking back to the Libra coin rug pull from earlier within the yr, the place builders retained disproportionate management of liquidity. Moreover, Lookonchain reported that one insider flipped $450,000 value of USDC into $3.37 million in simply hours, highlighting how early entrants capitalized on privileged entry.
Nonetheless, even with the skepticism, Kanye’s star energy shone, with YZY rapidly listed on CoinMarketCap whereas additionally securing change listings, together with Bitget.
Moreover, the official website launched not solely the token but in addition Ye Pay, a crypto cost processor, and YZY Card, a debit resolution aimed toward on a regular basis spending in YZY and USDC. It additionally indicated that the provision breakdown allotted 70% to Yeezy Investments LLC, 20% to public patrons, and 10% to liquidity, with vesting dealt with by Jupiter Lock contracts.
Nonetheless, neighborhood sentiment on the meme coin is cut up. Pseudonymous crypto dealer Defi Mochi warned that YZY’s absolutely diluted valuation between $2 and $3 billion was “dangerous risk-reward” given the destiny of different meme tokens, whereas additionally pointing to suspicious timing tied to unfrozen Libra funds. In the meantime, CryptoQuant CEO Ki Younger Ju drew comparisons to the Official Trump token, which spiked after launch however later collapsed by 88%, suggesting YZY might face the same trajectory.
Value Motion and Market Outlook
Knowledge from CoinMarketCap reveals YZY hit an all-time excessive of $3.16 inside hours of its introduction earlier than tumbling greater than 66% to only underneath $1.00, briefly marking its all-time low at $0.91 the identical day.
Within the final 24 hours, the meme asset has dropped over 54%, with hourly swings as sharp as 31%. On the time of this writing, its market cap had nosedived from its earlier multi-billion-dollar peak to take a seat at round $349 million in keeping with CMC.
Merchants have been each lengthy and shorting the token aggressively. Spot On Chain reported one dealer on Hyperliquid managed a $202,000 acquire by shorting the token with leverage, whereas one other repeatedly tried lengthy positions, racking up greater than $159,000 in losses.
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