Kanye West’s YZY Token Crashes After $3 Billion Market Cap Peak

• Kanye West launched the YZY meme coin on Solana, and it hit $3 billion market cap in 40 minutes but crashed to $1 within three hours.

• Six major wallets control over 90% of all YZY tokens, raising serious concerns about potential price manipulation.

• The project includes YE Pay payment processor and YZY Card, but experts call it a pump-and-dump scheme.

Rapper Kanye West launched the YZY meme coin on the Solana blockchain on Thursday, August 21, 2025. The token experienced dramatic price volatility within hours of its debut. YZY reached a market capitalization of approximately $3 billion just 40 minutes after launch before suffering a sharp decline.

The token surged nearly 1,000% within minutes of its debut, briefly hitting a market capitalization of around $3 billion before slipping to significantly lower levels. West announced the project through a video on his X social media account, directing followers to the Yeezy Money platform.

Token Distribution Raises Red Flags

On-chain analysis revealed concerning ownership patterns surrounding the YZY token launch. Data shows the top six holder addresses collectively control 90.38% of the total YZY token supply. This concentrated ownership structure has prompted warnings from market analysts about potential manipulation risks.

According to blockchain tracking data, multiple insider wallets prepared funds in advance and immediately bought YZY. A suspected team address added 30 million YZY tokens as single-sided liquidity to the YZY-USDC Meteora Pool within a specific price range of $3.17 to $4.49, creating what analysts describe as the largest resistance zone for the token.

YSZ Solana Meme coin gets Strong Liquidity Boost | Source: lp4fun

The launch occurred despite West’s previous criticism of cryptocurrency projects that “prey on fans.” Before announcing his token project, the rapper had previously expressed skeptical views about meme coins.

Ecosystem Features and Market Response

The YZY launch includes additional components beyond the basic token. The Yeezy Money platform introduced YE Pay, a cryptocurrency payment processor. The ecosystem also features YZY Card, marketed as a debit card tool for seamless crypto transactions.

These utility features represent an attempt to provide practical applications rather than purely speculative value. However, market observers note the current momentum appears driven primarily by speculation rather than fundamental utility adoption.

The token value has dropped sharply from above $3 to $1 within three hours of reaching its peak valuation. Trading data indicates significant volatility, with some traders capitalizing on the price swings through leveraged positions.

Source: HyperDash

Traders have expressed skepticism about the project’s legitimacy and long-term viability. The rapid price decline has led some analysts to characterize the launch as exhibiting classic pump-and-dump characteristics commonly associated with speculative meme coin releases.

The launch coincides with renewed interest in Solana-based meme coins, as platform Pump.fun recently crossed $800 million in lifetime revenue. This broader market context contributed to initial investor enthusiasm for West’s token despite underlying concerns about project fundamentals and ownership concentration.