News View Non-AMP

Crypto Rugpull? Arthur Hayes Calls Out Kanye’s $YZY Token After Costly Gamble

Published by
Zameer Attar and Anjali Belgaumkar

The world-famous Hip-Hop artist, Ye, better known as Kanye West, launched his official crypto, $YZY. According to Nansen Data, within just 40 minutes of its release, the YZY token hit a market capitalization of $3 billion, but it quickly stumbled back to $1.05 billion. Despite the hype, on-chain analysts raised red flags. 

Is YZY Legitimate? Analysts Claim Suspicious

West recently launched the token carefully after denying the promotion of fake currency for $2 million in February. But crypto experts were quick to point out the threats of potential insider trading risks. 

Arthur Hayes, co-founder of BitMEX, reportedly bought into the token, viewing it as a short-term investment. However, the sentiment didn’t last long as he condemned the crypto. He wrote on X, “Oopsie … fam next time pls don’t let me trade shitters like $YZY. Should have just kept two-steppin.” 

Coinbase Expert Verify Insider Trading in YZY

Coinbase director Conor Grogan said that insiders held 94% of the supply, with one wallet initially controlling 87% before distributing to others. 

Grogan said, “At least 94% of the new Kanye token is insider-owned…87% of the new Kanye token was owned by a single multisig  (now dispersed to multiple wallets).”

“3%+ was bought in a single transaction, with size, by assorted (prepared) wallets at market open,” he added. 

Blockchain analytics firm Lookonchain also raised concerns, saying, “Multiple insider wallets prepared funds in advance and immediately bought $YZY…Insider wallet 6MNWV8 knew the contract address in advance and even tried buying yesterday.” 

Mixed Reactions from the Traders

One trader spent $24,000 in Solana priority fees to secure $3.4 million gains, while another pocketed $6 million at peak. Not all were lucky, though. One user mistakenly bought the wrong contract, losing about $710,000. Fortunately, the user later recovered some losses by purchasing the correct contract.

This highlights the extreme volatility and risks involved in the token. It also demonstrates the substantial insider profits reported during the YZY token launch phase.

FAQs

Is the $YZY token legitimate?

Analysts raised red flags due to suspicious activity, including a single wallet holding 87% of the supply and significant insider trading.

Who are the insiders in the $YZY token launch?

Coinbase and Lookonchain experts reported that insiders, who held 94% of the supply, knew the contract address in advance and bought large amounts at launch.

What is a “multisig” wallet?

A multisig, or multi-signature, wallet requires multiple private keys to authorize a transaction, offering enhanced security. It was used by insiders to control the $YZY supply.

What is “insider trading” in crypto?

Insider trading is when individuals with privileged information, such as early access to a token contract, use it to make profitable trades before the public can.

Zameer Attar and Anjali Belgaumkar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Recent Posts

XRP News: Why Wall Street May Soon Turn Into XRP’s Biggest Cheerleader

For years, XRP has lived in the shadow of Bitcoin and Ethereum, often labeled the…

October 25, 2025

3 Reasons Why Solana & Cardano Whales Are Loading Up on $TAP – The First Would Shock You!

Clearly, current market conditions are gloomy and bearish, marked by a significant downturn in the…

October 25, 2025

Fundstrat’s Tom Lee Predicts Year-End Crypto Rally, S&P 500 Could Rise Up to 10%

The crypto market is showing signs of a potential rebound as key indicators start to…

October 25, 2025

Ethereum Price Prediction 2025: Institutional Rotation Signals 40% Gains Ahead

The Ethereum price prediction 2025 narrative is becoming increasingly bullish as 2026 is only a…

October 25, 2025

Best Crypto to Buy Before 2026 as Investors Seek 20x ROI

As the crypto market moves toward another potential bull cycle, investors are zeroing in on…

October 25, 2025

SpacePay Unveils Easy Multi-Chain Payment Widget Ahead of Expected Q4 Crypto Rally

October hasn’t played out for crypto the way many people hoped. Even so, the year…

October 25, 2025