YZY Memecoin Plummets 81% from Its High, Leaving 50,000 Traders at a Loss

YZY Memecoin Performance

• Significant Value Drop: Kanye West's YZY memecoin has plummeted 81% from its peak, trading at $0.5508, down 1% in the last day and 52% over the past week. The token reached an all-time high of $2.95 on August 21, briefly achieving a market cap of over $3 billion.
• Current Market Capitalization: YZY's market cap has decreased to $71.6 million, with a daily trading volume of $36.6 million, reflecting a 9% increase in speculative trading activity despite the overall decline.

Investor Losses

• Widespread Losses Among Investors: Out of more than 70,000 wallets that purchased YZY, 51,862 experienced losses between $1 and $1,000, while 5,269 lost between $1,000 and $10,000. Additionally, 1,025 wallets faced losses ranging from $10,000 to $100,000, 108 wallets lost between $100,000 and $1 million, and 3 wallets suffered losses exceeding $1 million.
• Profitable Traders: Only 18,333 wallets made a profit, collectively earning $66.6 million. However, 86% of these profitable traders (15,792 wallets) earned less than $1,000, with 30% of total profits captured by just 11 wallets, each earning over $1 million.

Allegations and Concerns

• Insider Trading Allegations: The uneven distribution of gains has led to accusations of insider trading and the use of bots to acquire tokens before retail investors. This pattern mirrors trading behaviors seen in other celebrity-backed tokens.
• Tokenomics Issues: Analysts have raised concerns regarding YZY's tokenomics, noting that liquidity pools may allow developers to manipulate prices. A significant portion of the token supply (70-94%) remains under insider control through Yeezy Investments LLC.

Kanye West's Shift to Cryptocurrency

• Contradictory Stance: Kanye West's foray into cryptocurrency is notable, especially given his previous comments labeling memecoins as "hype-driven scams." The rapid rise and fall of YZY aligns with trends observed in other celebrity tokens, often resulting in substantial losses for retail investors.
• Lack of Response: As of now, West and his team have not addressed the community's concerns or the allegations of insider trading, and no legal actions have been initiated.