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.
Source: https://www.thecoinrepublic.com/2025/08/21/kanye-wests-yzy-token-launch-flagged-for-insider-trading-activity/
