What to Know:
- Over 70,000 traders joined the $YZY hype, but the majority faced heavy losses.
- 105 traders lost between $100K–$1M, with 3 losing over $1M each.
- Despite $75M wiped out, $YZY still fuels debate between bulls and bears.
Kanye West’s much-hyped $YZY token is facing a brutal reality check. After just one week of trading, more than 70,000 investors have been hit with losses totaling an estimated $75 million, according to data shared on X. A small number of traders have made large profits, but the majority are facing severe losses, which has fueled resentment and discontent among the community.
The Numbers Tell the Story
The scale of the wipeout is shocking. Crypto analyst reported that:
- 11 traders netted $1 million each
- 99 traders gained around $100,000
- 51,000 traders lost a combined $74 million
Another interim report from painted an even clearer picture. Out of more than 70,000 investors in YZY:
- 51,862 people lost between $1 and $1,000
- 5,269 lost between $1,000 and $10,000
- 1,025 lost between $10,000 and $100,000
- 108 lost between $100,000 and $1 million
- 3 people lost over $1 million each
In total, around 105 traders lost between $100,000 and $1 million, cementing this as one of the most painful celebrity-token crashes in recent memory.
Why Did YZY Token Collapse So Fast?
The severe losses and large sell-off were caused by a number of factors.
1. Post-Launch Profit Taking
On-chain data shows wallets linked to the YZY launch team sold $1.5 million worth of tokens during the past week. Even worse, the top 6 wallets still control 90% of the supply. This concentration creates ongoing sell pressure and makes new buyers nervous.
Early investors who bought YZY coin at launch prices ($0.24–$0.35 on Aug. 21) were able to sell around the current price of $0.48, leaving later entrants holding the bag. The overhang of insider-controlled tokens has raised fears of a possible rug pull.
2. Weak Token Design
YZY’s structure also played a big role in its crash. Around 70% of the token supply is locked for 24 months, but critics argue this vesting setup can be manipulated. More concerning, the liquidity pool only contains YZY tokens, no stablecoins. That means insiders can push prices up temporarily and then dump on unsuspecting buyers.
Combined with Kanye West’s total silence since the launch, many traders now see little reason to believe in the token’s long-term roadmap.
3. Meme Coin Fatigue
The wider meme coin market has also cooled. According to CoinGecko, the sector dipped 2.1% in the last 24 hours, while Bitcoin gained slightly (+0.4%). YZY, however, fell 1.73%, underperforming peers. This suggests that beyond the general downturn, YZY token is dealing with its own coin-specific issues.
Traders Furious, Confidence Shaken
Retail traders who suffered significant losses have posted furiously on X. Many contend that because of its lack of use and insider-heavy supply, the token was doomed from the beginning. Others point the finger at FOMO and celebrity hype for luring thousands of people into investing before fully comprehending the risks.
The silence from Kanye West himself hasn’t helped. Without clear communication or updates on promised projects like Ye Pay, a payment app linked to the token, confidence has dropped to near zero.
Some traders believe that the YZY coin price may recover in the near future despite the instability. The coin may be oversold, according to technical indicators (RSI7 = 2), which can occasionally result in a brief price recovery. However, the hazards are still considerable in the long run. YZY token may soon become one of the many celebrity coins that have been abandoned if the team doesn’t deliver on useful features like Ye Pay or get listings on well-known exchanges like Binance.
Conclusion
The $YZY crash is a stark reminder of how dangerous hype-driven tokens can be. While a lucky few made millions, the overwhelming majority of investors were left with losses, in some cases, life-changing sums.
As one trader put it on Twitter: “Kanye coin was never about community or utility. It was about insiders cashing out on hype.” For now, the future of YZY coin looks uncertain. Unless Kanye himself steps in with leadership and a clear plan, the token risks fading into obscurity as just another cautionary tale in the volatile world of crypto.
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