Kanye West launched the Solana on-chain Meme coin YZY, which rose nearly 1000% at the debut but saw a market capitalization shrink by 90% | A must-read for encryption investors.

Famous American artist Kanye West announced the launch of the Meme coin "YZY" based on the Solana Blockchain on Thursday, and it experienced severe fluctuations as soon as it went live. The Token surged nearly 1000% within minutes of its launch, with its market capitalization at one point reaching $3 billion before plummeting to $137 million. On-chain data shows that insiders profited over $3.4 million through early trading, and currently, the top six Holdings addresses control over 90% of the supply. This issuance coincides with the political concept token driving the speculation frenzy of Meme coins, while highlighting the development trend of the Solana Blockchain becoming the preferred platform for issuing Meme coins.

YZY Token Launch Experiences Extreme Volatility

Market data shows that the YZY Token skyrocketed nearly 1000% within minutes of its launch, briefly reaching a market capitalization of about $3 billion before quickly falling back to around $137 million. Kanye West announced in a video posted on his X account: "The official Yeezy Token is officially launched," and linked to the Yeezy Money concept website, which claims to "free users from centralized control." The project also launched a cryptocurrency payment processor called Ye Pay and a debit card named YZY Card.

Insiders Quickly Cash Out for Profit

Blockchain data analysis platform Lookonchain reports that an investor spent 450,000 USDC to purchase 1.89 million YZY at an average price of $0.24 through two wallets, and then sold 1.59 million tokens at a price of $2.12 to exchange for 3.37 million USDC, achieving a profit of over $3.4 million, while still holding tokens worth approximately $510,000. To gain early entry, a certain wallet even paid a priority fee of $24,000.

Political Concept Tokens Drive Speculative Frenzy

Despite a significant decline from its peak, YZY trading activity remains highly active, with a 24-hour trading volume exceeding $386 million. The current price is slightly above $1, with a circulating supply of approximately 130 million coins. Market data indicates that the top six Holdings addresses collectively control over 90% of the Token supply. This issuance coincides with an overall recovery in the cryptocurrency market, with total market capitalization climbing to $4 trillion, Bitcoin reaching an all-time high, and Wall Street institutions accelerating their investments in the digital asset space.

Solana Becomes the Preferred Platform for Meme Coin Issuance

For Kanye, this issuance marks his official entry into the cryptocurrency field after experiencing a series of indirect industry associations. In 2022, he faced controversy that led to JPMorgan terminating their partnership, and during the same period, his billionaire status vanished. Forbes estimates his current net worth to be around $400 million, a significant decrease from the previous $2 billion. The issuance of YZY also highlights Solana's status as a hub for Meme coins, as this Blockchain has become the preferred platform for speculative trading and viral projects due to its high-speed transactions and low fee advantages.

Meme Coins Integrating into the Mainstream Financial System

Meme coins are usually created based on jokes, internet culture, or celebrity effects, and are increasingly integrating into the mainstream financial system. Their price fluctuations often reflect market attention and speculation heat, rather than technical fundamentals. The optimized trading experience and low-cost characteristics on the Solana blockchain provide an ideal issuance environment for these high-risk speculative assets, encouraging more celebrities to choose this network to issue token projects.

Conclusion

The drastic fluctuations of the YZY Token once again highlight the high-risk characteristics of the Meme coin market, and the phenomenon of insiders profiting first is worth being cautious about. Although the Solana Blockchain provides technical convenience for Token issuance, investors still need to pay attention to the risks of excessive token concentration and the fading of celebrity effects. As political concept tokens continue to drive market enthusiasm, it is recommended that cryptocurrency investors strengthen risk assessment and participate cautiously in high-volatility asset trading.