Amid the controversial launch of Kanye West’s official memecoin on Solana, the crypto community has sounded the alarm for another potential celebrity token scam, with insider trading allegations outshining Ye’s party.
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The Rise And Fall Of YZY
On Wednesday night, controversial Hip-Hop artist and public figure Ye, better known as Kanye West, launched his official memecoin, YZY, on the Solana blockchain. West announced the token in his X account, posting the contract address (CA) in a picture with the caption “YEEZY MONEY IS HERE. A NEW ECONOMY, BUILT ON CHAIN.”
After the announcement, the memecoin skyrocketed to a market capitalization of $3.1 billion before quickly dropping 65% to the $1.1 billion mark in the following hours. Meanwhile, YZY’s price went from an all-time high (ATH) of $3.16 to hover between the $0.95-$1.30 price range.
The crypto community reported multiple red flags, including allegations of insider trading and a lawsuit waiver. Notably, the official website has a controversial waiver that raised concerns among investors.
In the “What Else Should I Know?” section, the website stated that by purchasing the token, investors agree they “will not bring, join or participate in any class action lawsuit as to any claim, dispute or controversy” that they may have against any of the “Covered Parties.”
“if you’re buying this ur literally giving them permission to rug you without consequences,” a community member noted.
Nonetheless, investors may opt out of the dispute resolution provision by “providing written notice of your decision within thirty (30) days of the date that you first access the Website,” the page reads.
Ye’s Memecoin Supply Owned By Insiders
Conor Grogan, director at Coinbase, estimated that at least 94% of the supply was owned by insiders, with 87% of the token being held by a single multisig wallet before it was distributed to multiple wallets.
According to the “YZYNOMICS”, 20% of the token’s distribution would be for public supply, 10% for liquidity, and 70% for Yeezy Investments LLC.
On-chain analytics firm Bubblemaps affirmed that “the bubble map of YZY mostly MATCHES the distribution on Kanye’s website,” cautioning that “the 17% address ‘public supply’ is UNLOCKED and can sell at any time.”
Lookonchain highlighted that only YZY had been added to the liquidity…
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