Key Insights:
- Multiple wallets prepared funds in advance and purchased $YZY tokens immediately upon launch at 1:52 AM UTC.
- Analysis from Lookonchain and Nansen documented insider wallet activity generating millions in profits.
- $YZY token briefly reached $3 billion market cap before declining, with $724 million in trading volume recorded.
Kanye West launched the $YZY token on the Solana blockchain at 1:52 AM UTC on Aug. 20, with on-chain analytics revealing coordinated insider trading activity surrounding the debut.
Blockchain analyst Lookonchain identified multiple wallets that demonstrated advanced knowledge of the $YZY contract address. On-chain data showed that Wallet 6MNWV8 attempted to purchase $YZY tokens one day before the official launch.
The same wallet spent 450,611 $USDC to acquire 1.29 million $YZY tokens at $0.35 each on launch day.
The address subsequently sold 1.04 million $YZY for 1.39 million $USDC, retaining 249,907 tokens valued at $600,000. Total profits exceeded $1.5 million for this single wallet.
Another insider wallet operated through two addresses to spend 450,000 $USDC purchasing 1.89 million $YZY tokens at $0.24 each. The address sold these positions for 3.37 million $USDC at $2.12 per token.
The wallet retained 303,425 $YZY tokens worth $510,000, booking profits exceeding $3.4 million, representing a 760% gain.
Insider Profits Outshine Overall Losses
Analytics firm Nansen tracked trading activity across 62,465 wallets participating in $YZY trading. In a note shared, Nansen assessed that the top 500 wallets generated $50.4 million in realized profits against $21.4 million in losses.
Individual wallet performance showed the largest realized profit reached $3 million, while the largest realized loss totaled $1.3 million. Unrealized gains peaked at $164,000, with unrealized losses reaching $561,000.
Nansen data identified 9,413 wallets realizing profits above $10, compared to 15,999 wallets recording losses exceeding $10.
The $YZY pool itself has earned $10 million since its inception, with earnings distributed among participants based on their trading activity.
$YZY reached a peak market capitalization of $3 billion within hours of launch before declining to approximately $1.3 billion.
Trading volume totaled $724 million, significantly lower than President Donald Trump’s TRUMP memecoin, which recorded $29.5 billion in its first 24 hours.
Solana network achieved 2,300 transactions per second during the $YZY launch, setting a new all-time high for real TPS on the blockchain.
The trading activity pushed Solana’s capabilities without experiencing congestion.
Token Structure Shows One-sided Liquidity Mechanism
$YZY launched with only $YZY tokens added to the liquidity pool, excluding $USDC. This structure allows developers to sell $YZY by adding or removing liquidity.
The project implemented anti-sniping measures by deploying 25 contract addresses, with one randomly selected as official. One insider wallet paid 129 SOL ($24,000) in priority fees to secure early positions.
The contract deployer added 30 million $YZY tokens ($34 million) to the liquidity pool 50 minutes ago, as of press time, with a price range of $3.1716 to $4.4929.
Once prices exceed $3.1716, West earns fees while gradually selling $YZY for $USDC. The pool will sell 30 million tokens if prices surpass $4.4929.
$YZY distribution allocates 70% to Yeezy Investments LLC, 20% for public allocation, and 10% for liquidity.
The vesting schedule operates through Jupiter Lock protocol with three tranches featuring different cliff periods and 24-month terms.
The project positions $YZY as part of a broader ecosystem, including Ye Pay payment processor and $YZY Card for global spending of $YZY and $USDC.
The website describes $YZY Money as “a concept for a new financial system built on crypto rails.”
West announced the launch through his verified X account, posting “A new economy, built on chain” with a subsequent video confirming the official Yeezy token drop.
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