We’re going into degen territory right this moment, of us.
For those who opened Crypto Twitter, you prolly observed lots of people speaking about Kanye West.
And no, this time it wasn’t as a result of he stated essentially the most unhinged, outrageous, and cancellable sh*t you’ve heard in your life.
This time, he promoted a memecoin referred to as YZY:
In keeping with the web site, YZY’s alleged to be the forex powering transactions inside “YZY MONEY,” a “monetary system constructed on crypto rails.”
Nevertheless it ended up being yzy cash for insiders, who, based on Conor Grogan, a director at Coinbase, held no less than 94% of the entire provide.
The coin reached a $3B market cap in underneath an hour, then crashed again all the way down to round $1B simply as shortly.
Is anybody stunned? Completely not. Virtually each celeb memecoin to this point has ended the identical method – quick pump, quicker dump.
Aaand there’s extra tea. Some crypto influencers are satisfied that Hayden Davis could be behind the YZY launch.
For those who’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 a bit too properly:
👉 The launch appeared precisely like LIBRA’s – no web site, no whitepaper, no docs. Only a well-known particular person posting the contract tackle;
👉 The hype wasn’t natural both – a bunch of the identical X accounts that hyped Davis’ outdated initiatives began shilling YZY;
👉 YZY launched with barely any liquidity, which prompted a fast value enhance 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?
Nicely, partly so you may perceive why your degen pal received’t shut up about it right this moment (and you’ll inform ’em you examine it in your fave e-newsletter 😌 The Each day Squeeze, in fact 😌).
However extra importantly, it is a reminder: celeb memecoins are among the riskiest bets in crypto.
👉 Most haven’t any product, roadmaps, or actual utility, and their value relies upon totally on hype;
👉 Insiders and early patrons often dump on the high, and common buyers are left with heavy losses.
That’s why buyers have to deal with celeb tokens as short-term hypothesis at finest. For those who’re shopping for, know you’re betting on hype cycles and a spotlight spans – not long-term adoption.
Now you are within the know. However take into consideration your pals – they in all probability don’t know. I’m wondering who may repair that… 😃🫵
Unfold the phrase and be the hero you understand you’re!
