Kanye West’s YZY Memecoin: A $3B Surge and 60% Crash

The Launch

The launch was explosive. In the first 60 minutes, prices tripled as retail investors piled in, egged on by social media hype and West’s public endorsement. Within a day, however, YZY’s market value plunged 60%, wiping out hundreds of millions in paper wealth. Blockchain forensics revealed “sniper bots” and insider wallets extracting millions from the liquidity pool, sparking accusations of manipulation.

This pattern mirrors earlier celebrity-backed tokens, such as Akon’s Akoin and various NFT projects tied to stars, where initial excitement was followed by steep declines once the frenzy cooled.

West’s YZY token launch comes during a broader memecoin boom. In 2025, Solana-based tokens such as BONK and WIF drew massive trading volumes, showing the appetite for high-risk, high-reward bets. Unlike grassroots coins that build around internet subcultures, YZY is explicitly tied to a celebrity brand. That strategy gives it marketing firepower but also exposes it to outsized volatility if the celebrity’s reputation falters or early backers exit.

Compared to stable, utility-driven projects like Ethereum Layer-2 networks or tokenized treasuries, YZY represents the opposite end of crypto: hype-driven, community-light, and dependent on personality.

Roughly $20 million was siphoned in coordinated trades, leaving retail investors holding depreciating tokens. Analysts warn that this echoes the “rug pull” mechanics that have plagued lesser-known tokens, though YZY retains brand-driven liquidity that may prevent a total collapse.

For fans who treated YZY as a cultural stake, the plunge stung. Some online communities framed it as a betrayal, while others defended it as part of crypto’s high-volatility DNA.

SEC and Celebrities

The U.S. Securities and Exchange Commission (SEC) has increasingly scrutinized celebrity involvement in crypto, especially after cases against Floyd Mayweather and Kim Kardashian for promoting tokens without disclosure. Given West’s high profile, YZY may accelerate regulatory debates about whether celebrity-backed assets should be subject to stricter investor protection rules.

In South Korea, where retail traders were heavily involved, the Financial Services Commission has already flagged memecoins as “high-risk speculative products.” Similar warnings could ripple across Europe and the U.S. if YZY’s fallout deepens.

Culturally, YZY shows how far celebrity influence can stretch into decentralized finance. Unlike sneakers or albums, tokens trade 24/7, are global from launch, and can collapse just as quickly as they soar. The blend of fandom and financial speculation is potent but fragile.

For the broader market, YZY is a reminder of how memecoins act as sentiment amplifiers. Their success or failure can spill over into liquidity pools for Solana and Ethereum, affecting stablecoins and altcoins. Analysts at Bitedge suggest that had YZY’s liquidation pressure continued unchecked, it could have triggered selloffs across Bitcoin and major stablecoins.

What’s Next for YZY?

Whether YZY stabilizes or fades depends on several factors: Kanye’s continued promotion, liquidity support from exchanges, and whether regulatory probes intensify. Some traders see potential in its volatility for short-term gains, while longer-term investors remain cautious after the initial crash.

West himself has framed YZY not just as a token but as part of a broader “cultural money” vision.

If that narrative sticks, YZY could sustain relevance in the memecoin space.
If not, it risks becoming another footnote in crypto’s long list of speculative fads.