- Kanye West’s YZY coin crashed 81% after Instagram hack.
- Hack promoted a counterfeit token, prompting market collapse.
- Liquidity rapidly exited, affecting $7 million on pump.fun.
Kanye West’s YZY meme coin plummeted by 81% after his Instagram account was reportedly hacked to promote a counterfeit token, causing market turmoil and rapid liquidity withdrawal.
The event highlights the vulnerabilities in celebrity-backed crypto projects, leading to significant financial losses and raising concerns about market trust and security.
Kanye West’s YZY meme coin saw an 81% drop from its peak after West’s Instagram account was hacked to promote a fake token. The hacking incident led to a swift collapse in the market and substantial liquidity loss.
The primary stakeholders include Kanye West as the coin developer, alongside early investors and “whales.” The YZY meme coin was deployed on Solana, with much of its initial supply controlled by a few wallets. “At its peak, YZY reached a ~$3 billion market cap, which plummeted to about $160,000 after the hack and panic selling began.”
The incident caused immediate repercussions in the market, with a significant withdrawal of liquidity. Approximately $7 million was quickly removed from the marketplace following the hack.
No institutional involvement was noted in the YZY launch, making it a celebrity-driven viral initiative. The ramifications were largely contained within the YZY token itself, with minimal broader implications.
YZY’s market cap fell dramatically from $3 billion to $160,000. The episode follows a familiar pattern seen in celebrity-driven coins that see initial hikes followed by rapid declines.
Historical patterns suggest continued price volatility and retail losses without structural market impacts. The regulatory response has been muted, with no direct investigations or formal comments from major agencies.
