In what is now a blueprint for crypto volatility—and an investor warning story—Kanye West’s (Ye’s) new YZY token burst onto the market before plummeting spectacularly. Here’s what happened:

Launch & Meteoric Rise

On the 21st of August 2025, Ye announced the release of his Solana-based meme token YZY as part of the larger YZY Money initiative—a payments ecosystem planned to feature tools and a debit card. The token’s hype-driven ramp-up had its valuation rise to $3 billion in just a few hours after going live.

The Fallout: A Record-Breaking Collapse

But it was short-lived. Within 24 hours, YZY collapsed by 90% for what could have been a record for the quickest failure of a celebrity-launched token. This rapid fall left many investors in disarray.

Who Won (and Who Lost)

• Early leakers and sniper traders were the overall winners. Wallets associated with early leaks and insider information profited vast amounts—some raking more than $1 million in mere minutes.

• Analyses indicate that 70% of token supply is still held by interests associated with Yeezy Investments LLC, which gives insiders the ability to control the market direction through large sell-offs.

• Out of 60,000+ traders, more than 83% reported losses, with average wallet losses ranging from $1,000 to $100,000 on thousands of addresses.

• 105 traders incurred individual losses between $100k to $1M, amounting to over $26 million, while an extremely small number of wallets—around 11 wallets—pocketed gains of over $1 million in total.

• On-chain analysts observed that retail crypto users in general were mostly left out of the profits—”no ‘civilian’ winners among the top 1,000 holders,” since large players owned and experienced the price ride.

Compounding Chaos: Fake Tokens & Instagram Reversal

To the chaos, a counterfeit YZY token spread after Kanye’s Instagram was hacked. That counterfeit coin temporarily reached a $7 million market cap before melting down in hours. Ye was quick to state the counterfeit token was not authorized and separate from the actual launch.

Wider Significance

• This incident renewed attention about celebrity-backed cryptocurrencies, fueling concerns that those projects are hype rather than substance—and tend to precede pump-and-dump strategies.

• Regulators and legislators will take notice, particularly against the backdrop of discussions of crypto regulation and consumer protection.

Key Takeaways

• Launch to implosion in less than a day: YZY exploded to a $3B high before plummeting 90% in 24 hours.

• Insider benefit: Insider holders of 70–90% of the tokens reaped enormous rewards, while retail traders bled money.

• Investor warning merited: Star crypto ventures are still extremely risky and unpredictable—due diligence, skepticism, and regulatory scrutiny are in order.

This tale may well be the most soap-operatic celebrity token rollout in crypto history—but only time will tell if it will spark substantive regulatory reforms or just wash away as the next scandal.