Crypto trader lose $500k in two hours trading Kanye West meme coin

The speculative frenzy around Kanye West’s memecoin, Yeezy Money ($YZY), has already claimed its first high-profile casualty.

On-chain data reveals that one crypto trader, identified as wallet 6ZFnRH, lost half a million dollars in less than two hours after misjudging the token’s violent price swings.

The trader initially deployed 1.55 million $USDC to purchase 996,453 $YZY at an average entry price of $1.56. However, as liquidity thinned and sentiment shifted, $YZY dropped below the $1 threshold. The whale capitulated at $1.06, recouping only 1.05 million $USDC and locking in a staggering $500,000 loss in record time.

Cryptocurrency traders not concerned by Yeezy Money volatility

The brutal liquidation has not deterred speculators from piling into the coin. Well-known trader Machi Big Brother (@machibigbrother) has revealed a 3x leveraged long position worth 570,000 $YZY ($613,800), a bet that the token’s volatility can be exploited for outsized returns.

Kanye West himself has also raised the stakes. Blockchain records show that he injected 30 million $YZY (valued at $34 million) into the liquidity pool on Meteora, setting an automated range between $3.1716 and $4.4929.

Once the price crosses the lower bound, West will begin earning fees while gradually selling into $USDC. Should $YZY break above the upper band, the entire allocation will be sold, effectively realizing $134 million at peak levels.

The combination of whale losses, speculative leverage, and celebrity-backed liquidity has created a perfect storm around $YZY. For now, the token has slipped under $1, raising doubts about its sustainability.