Over 51,000 traders have caused losses to Kanye West’s recently launched Memecoin, highlighting the potential risk of trading celebrities approved tokens with no inherent technical usefulness.
The Kanye West-Linked Yzy Token was launched on the Solana blockchain on August 21st. It rose 1,400% within the first hour before losing more than 80% of its value.
Of the 70,200 traders who invested in celebrity-approved tokens, more than 51,800 traders have lost more than $1 million, according to Blockchain Data Platform’s Bubblemaps.
“On the other hand, 11 wallets made more than $1 million,” he wrote a bubble map on Wednesday in X-Post.
Amid massive losses from the majority of token traders, it generated more than $1 million in profits out of 11 of 70,000 wallets, while 99 generated over $100,000, highlighting the financial risks of celebrity-approved meme tokens with a shortage of blockchain utilities.
Meanwhile, Yzy Token’s prices are over 80% from an all-time high, with only 19,531 traders holding tokens, data from the Blockchain Intelligence Platform show.
Former kickboxing champion Andrew Tate was one of the traders looking to make money from the tokens the rapper was backed by. Tate opened a short, leveraged position three times with the Yzy token, resulting in a total loss of $700,000 on Tate-related high lipid accounts, the Cointelegraph reported Friday.
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Hayden Davis releases YZY token “sniper” $12 million: Bubbles
After the Yzy incident, the blockchain data platform pointed out Hayden Davies, co-creator of the official Melania Meme (Melania) and Libra Token, as one of the potential insiders.
Davies received new access to his funds on August 21 after the judge was unfrozen of $57.6 million in USDC (USDC) stubcoin tied to the Libra Token scandal, Cointelegraph reported.
“In spite of our collective efforts as investigators, builders and communities, the same names continue to carry out the same scam,” he wrote Bubblemaps in X-Post Wednesday, adding:
“The next day, Davis (Kelsier) sniped the Yzy launch, earning $12 million.”
“Naseem: A network of snipers tied to Naseem, famous for making $100 million on Trump, first bought Yzy. These snipers are consistently the first and printed by millions,” the platform added.
Related: Ether Traders have almost wiped out their epic run from $125,000 to $43 million
Despite a massive surge in retail profits, most celebrities have approved cryptocurrencies are unable to stand up to gain traction and become a massive token.
Over 30 Celebrity Endor tokens were released at Solana in June 2024, with prices falling by more than 73.23%. Celebrities who supported these tokens included 50 Cent, Caitling Jenner, Iggy Azalea and the football legend Ronaldinho Gercho.
Tate jumped on the Solana Memocoin bandwagon on June 7, 2024, endorsing more than 10 talks, most of which lost about 99% of its value shortly after approval.
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