Rapper Kanye West, who is now called YE, has entered the market of cryptocurrencies with fanfare after revealing his token Yzy on Solana. In less than 40 minutes after its launch, the token briefly reached a market capitalization of $ 3 billion. But the momentum quickly faded when information leaked concerning internal control and suspect trading practices, arousing distrust among traders and analysts.
In short
- The token Yzy climbed $ 3 billion in 40 minutes, then fell to 1.05 billion due to volatility concerns.
- The grip of initiates on Yzy's offer raised fears of market manipulation and a lack of liquidity.
- The tokens supported by celebrities arouse growing skepticism despite the media threshing and short -term gains.
Rapid and strong updated climb
West has promoted token via its Yeezy Money site, presenting it as the basis of a new financial system controlled by the blockchain. The token has gained in traction at a frantic pace, attracting the interest of private investors and whales, some of which have made massive movements with it. However, the capitalization of token fell to around $ 1.05 billion shortly after, illustrating the fluctuating nature of digital currencies supported by celebrities.
Despite warnings in the Small text concerning the possibility of total lossinvestors rushed. Some traders have cited comparisons with the same Trump, which quadrupled in value in 28 hours earlier this year. The leverage trader James Wynn highlighted the attraction of liquidity and short -term gains, while the co -founder of Bitmex, Arthur Hayes, would also have bought.
The control exercised by the initiates arouses concerns
Concerns increased when analysis platforms revealed the concentration of the token offer. Coinbase Conor Grogan noted that initiates controlled approximately 94 % of the supply in circulation, with a single multisignature portfolio holding 87 % before redistribution. This level of concentration has intensified fears of market manipulation.
Lookonchain also reported that the liquidity pool only contained tokens yzywhich means that developers could adjust liquidity at will. This structure left buyers exposed to sudden massive sales. In addition, several initiates collected profits from several million dollars in the first hour by operating priority costs and early access.
Onchain Lens observed thatAn early participant had accumulated more than $ 6 million in profits at the peak. Meanwhile, another initiate mistakenly bought a Spoof token and lost $ 710,000, although he then straightened up to the official version.
Broader concerns around celebrity tokens
The Yzy episode is added to the growing skepticism with regard to the tokens promoted by celebrities and politicians. Earlier this year, Argentinian president Javier Milei had briefly supported the Token Libra before withdrawing his support, which led to collapse. Likewise, Donald Trump's token aroused controversy despite important short -term gains.
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