Kanye West Launch YZY Memecoin-Insider Traders Buy and Dump

• Kanye West launch YZY memecoin , with the market cap rising to $3 billion

• YZY insider traders are buying and dumping YZY a major red flag for investors

Celebrity-themed and inspired memecoins are back in the market after Trump, Melania, and Libra all crushed. The latest entrant is the world's famous rapper Kanye West, who announced the launch of memecoin called YZY on the Solana blockchain. 

Kanye West Launch YZY Memecoin

After months of speculation, Kanye West finally launched his memecoin YZY. As reported by Wu Blockchain, the memecoin's market capitalization surged surpassing $3 billion. However, most of these tokens are held by a few hands. On chain data shows that the top six holder addresses collectively control 90.38% of the token supply. In addition to the YZY memecoin, the project’s official website also introduced a crypto payment processor called YE Pay and a debit card tool named YZY Card.

Source: Lookonchain

After Kanye West launched YZY memecoin, the crypto community jumped in, scooping up the memecoin to take long positions. According to Lookonchain, a trader opened 3x longs on YZY, taking two long positions since the memecoin launch. Unfortunately, all of these trades ended in significant losses, resulting in a total loss of $159k. 

XZY Liquidity is a source of concern

According to Lookonchain, the memecoin team made various concerning moves. According to them, a team address: 5wbbjk…Z6wMcp added 30M YZY in single-sided liquidity to the YZY-USDC Meteora Pool between YZY prices of $3.171607-$4.492907, forming YZY’s most considerable resistance. YZY FDV has now dropped from a high of $3.2B to around $2B. These moves are mostly suspicious and could signal brewing trouble. 

Insiders are enjoying the party, which is a bearish signal.

While coins are created through public accumulation, transparency, and openness, YZY insiders exploited the launch to generate profit. According to Lookonchain, an insider spent 450K USDC to buy 1.89M YZY at $0.24 via two wallets, then sold 1.59 Million tokens for 3.37million USDC at $2.12. 

Even after selling, the insider still holds 303,425 YZY tokens worth $510K, with a profit of over $3.4 million, making over 760%.To ensure he got in first, one wallet even paid 129 SOL or $24K in priority fees. This guy had insider info about Kanye West's launch of YZY memecoin. 

Another insider had the information before Kanye West launched YZY memecoin, but did not have complete information about it. According to Lookonchain, the insider bought the wrong YZY and lost $710K. However, he returned and spent $ 761,000 USDC on the real YZY, and now sits on a profit of over $ 710,000, making back his loss.

Same Libra Scandal

Earlier in the year, the Libra scandal left many investors counting losses after the memecoin crashed after the core team dumped it. The same trend that was observed with Libra is repeating itself with YZY. According to Lookonchain, only YZY was added to the liquidity pool with no USDC. 

In this case, Dev may sell YZY by adding or removing liquidity, similar to LIBRA. Even more concerning is the fact that Multiple insider wallets prepared funds in advance and immediately bought YZY. For example, Insider wallet 6MNWV8 knew the contract address in advance and even tried buying yesterday.  The wallet spent 450,611 USDC to buy 1.29 million YZY at $0.35 today and sold 1.04 million tokens for $1.39 million, making $1.5 million in profit. This insider selling and information is a major red flag, and YZY memecoin could crush massively.