Kanye West, the iconic rapper and entrepreneur, has always been a wildcard. But his latest venture into the world of cryptocurrency with the $YZY meme coin has sparked controversy like never before. In a recent thread on X (formerly Twitter), user @StarPlatinumSOL breaks down how this launch turned into one of the most extractive events in crypto history, with insiders controlling a whopping 94% of the supply. Let's unpack this wild story step by step, and see what it means for meme token enthusiasts.

Kanye's Rocky Start with Crypto

It all began back in 2014 when a group of developers launched "Coinye West," a Litecoin fork featuring Kanye's face as its mascot. Kanye wasn't amused—he sued the team, labeling it a scam and shutting it down completely. At that point, he wanted zero association with crypto.

Fast forward to 2020, during his presidential run, Kanye started mentioning Bitcoin positively. Then in 2022, after JPMorgan froze his accounts, he donned a "Satoshi Nakamoto" hat (Satoshi being the pseudonymous creator of Bitcoin) and declared, "Bitcoin fixes this." He began advocating for self-custody—meaning holding your own crypto keys instead of relying on banks—and railing against censorship in finance.

The Shift in 2025: Hints and Rumors

By early 2025, Kanye's interest ramped up. He followed crypto influencers on X and dropped hints about launching his own token. Rumors swirled, especially after the success of other celebrity-backed coins like $TRUMP.

Then came a shady DM offer revealed by Kanye: $750K upfront to post about a token, plus $1.25M after 16 hours, with the post staying up for 8 hours before claiming a hack. This highlighted the scammy underbelly of celeb endorsements in crypto.

Around this time, reports surfaced of Kanye's team consulting top crypto figures for advice on a branded token launch. There were even whispers that he might have sold his X account.

The Explosive Launch of $YZY

This week, Kanye created a new X account and announced $YZY, touting it as "YEEZY MONEY IS HERE: A NEW ECONOMY, BUILT ON CHAIN" with a link to money.yeezy.com and the Solana contract address.

The hype was real—the token skyrocketed to a $3 billion market cap in just 40 minutes. But beneath the surface, trouble brewed.

The Insider Domination Revealed

On-chain analysis showed insiders held 94% of the supply from day one. One wallet (6MNWV8JFpXCkhV2swdsu5m8Wzoja4WKscTyb9p9BF3Yx) bought 1.29 million $YZY near $0.35 and sold 1.04 million between $1.07 and $1.45, pocketing over $1.5 million in minutes.

Videos emerged exposing the possible team behind the launch, fueling suspicions of foul play. As a result, the token plummeted over 66% from its peak, with insiders extracting more than $22.5 million.

Lessons from the $YZY Debacle

This isn't just another celeb token flop—it's a stark reminder of the risks in meme coins. Meme tokens are digital assets inspired by internet memes, often launched on blockchains like Solana for low fees and fast transactions. But without proper decentralization, they're ripe for manipulation.

If you're diving into crypto, always check tokenomics (the economic model of the token, like supply distribution) and use tools like DexScreener or Solana explorers to spot insider wallets. And remember: buying into hype without research can feel like self-sabotage, as one commenter put it.

What’s next for Kanye and $YZY? The token's future is uncertain, but this event underscores that in crypto, "crime is still legal" in many gray areas. Stay vigilant, folks—meme coins can be fun, but they're not for the faint-hearted.

For more insights on meme tokens and blockchain news, check out our knowledge base at Meme Insider.