We’re going into degen territory right this moment, people.
If you happen to opened Crypto Twitter, you prolly seen lots of people speaking about Kanye West.
And no, this time it wasn’t as a result of he mentioned essentially the most unhinged, outrageous, and cancellable sh*t you’ve heard in your life.
This time, he promoted a memecoin known as YZY:
In accordance with the web site, YZY’s speculated to be the forex powering transactions inside “YZY MONEY,” a “monetary system constructed on crypto rails.”
However it ended up being yzy cash for insiders, who, in keeping with Conor Grogan, a director at Coinbase, held at the least 94% of the overall provide.
The coin reached a $3B market cap in beneath an hour, then crashed again all the way down to round $1B simply as shortly.
Is anybody stunned? Completely not. Nearly each celeb memecoin so far has ended the identical approach – quick pump, sooner dump.
Aaand there’s extra tea. Some crypto influencers are satisfied that Hayden Davis is perhaps behind the YZY launch.
If you happen to’re unaware of this dude – Hayden was concerned with the LIBRA token rugpull (we broke that drama down right here).
And persons are connecting him to YZY as a result of some issues line up somewhat too nicely:
👉 The launch seemed precisely like LIBRA’s – no web site, no whitepaper, no docs. Only a well-known individual posting the contract tackle;
👉 The hype wasn’t natural both – a bunch of the identical X accounts that hyped Davis’ previous initiatives began shilling YZY;
👉 YZY launched with barely any liquidity, which induced a fast value improve earlier than liquidity shifted and insiders dumped. This additionally occurred with LIBRA;
👉 And the timing was the ultimate purple flag: YZY launched solely hours after a court docket unfroze Davis’ $57M in USDC from the LIBRA case.
Now, why are we even speaking about this?
Effectively, partly so you’ll be able to perceive why your degen pal gained’t shut up about it right this moment (and you’ll inform ’em you examine it in your fave e-newsletter 😌 The Day by day Squeeze, in fact 😌).
However extra importantly, it is a reminder: celeb memecoins are a few of the riskiest bets in crypto.
👉 Most haven’t any product, roadmaps, or actual utility, and their value relies upon fully on hype;
👉 Insiders and early patrons often dump on the prime, and common buyers are left with heavy losses.
That’s why buyers must deal with celeb tokens as short-term hypothesis at finest. If you happen to’re shopping for, know you’re betting on hype cycles and a focus spans – not long-term adoption.
Now you are within the know. However take into consideration your mates – they most likely do not know. I ponder who might repair that… 😃🫵
Unfold the phrase and be the hero you recognize you’re!
