Celebrity-themed crypto market recovers 200% on Kanye West’s YZY explosive debut
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While the broader market signaled potential recoveries, cryptocurrencies tied to celebrities saw remarkable rallies, fueled by Kanye West’s highly watched YZY launch on the Solana blockchain.
While insider allegations ruined the initial momentum, YZY soared to a whopping $3 billion market cap minutes after its debut, renewing sentiments in celebrity-themed tokens.
Coingecko data shows the market value of these assets saw a sharp jump before retracing, reflecting the wild volatility associated with cryptocurrencies.
The metric hovers at $209,957,854, up 222% over the past 24 hours.
Also, the daily trading volume has surged to surpass $464 million. That confirms robust investor and trader activity in this crypto segment.
Ye’s new venture sparked a gold rush atmosphere within the cryptocurrency community.
Social media, especially X, buzzed with conversations as recognized traders and investors invested in YZY.
James Wynn, who dominated trends lately with his massive crypto bets, accumulated Ye’s token.
Also, BitMEX co-founder Arthur Hayes joined the craze.
However, like most stories in the cryptocurrency industry, YZY’s hype was short-lived.
The digital token witnessed its market cap dip relentlessly from above $3 billion to around $1.05 billion.
Insider concerns dent YZY’s momentum
The brutal slump emerged as analysts quickly observed troubling signs in Ye’s crypto venture.
On-chain stats raised alarms over who is controlling the project.
Blockchain investigator Lookonchain highlighted:
Only YZY was added to the liquidity pool with no USDC. Dev may sell YZY by adding/removing liquidity, similar to LIBRA. Multiple insider wallets prepared funds in advance and immediately bought YZY.
Notably, Libra exhibits a bullish bias after the court unfroze over $57 million linked to LIBRA.
Meanwhile, YZY’s tokenomics allow developers to withdraw liquidity whenever they want and disappear with substantial returns, while regular investors suffer losses.
Insiders are already dumping the token, with one whale netting $1.45 million in returns.
Insider allegations, the community’s concern, and a looming liquidity crisis signal a challenging path for YZY.
The altcoin will unlikely recover to its peak anytime soon.
Echoes from past celebrity crypto ventures
YZY’s story isn’t new in the digital space.
While celebrity-themed tokens drive massive hype, they often yield controversial outcomes.
Nigerian singer Davido benefited massively from his meme token, which crashed 95% after he accumulated over $470,000 in profits.
Kim Kardashian’s endorsement of EthereumMax forced her to pay $1.26 million to settle with the Securities and Exchange Commission.
Legendary boxer Floyd Mayweather encountered similar scrutiny after a token that he had advertised collapsed.
Logan Paul is facing the law after the CryptoZoo NFT project failed to deliver.
In all cases, a celebrity used his influence to fuel initial excitement and benefit a few insiders before retailers witnessed staggering price declines.
Will YZY investors move to sue the rapper-turned-entrepreneur due to financial losses?
The prevailing sentiments signal weakening momentum.
Thus, the celebrity-themed cryptocurrency market cap could plunge further from the latest peaks in the coming hours and days.
The post Celebrity-themed crypto market recovers 200% on Kanye West’s YZY explosive debut appeared first on Invezz
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