We’re going into degen territory immediately, people.
In the event you 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 probably the most unhinged, outrageous, and cancellable sh*t you’ve heard in your life.
This time, he promoted a memecoin known as YZY:
In keeping with the web site, YZY’s imagined 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 response to 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 shocked? Completely not. Nearly each celeb memecoin thus 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.
In the event you’re unaware of this dude – Hayden was concerned with the LIBRA token rugpull (we broke that drama down right here).
And individuals are connecting him to YZY as a result of some issues line up somewhat too properly:
👉 The launch regarded precisely like LIBRA’s – no web site, no whitepaper, no docs. Only a well-known individual posting the contract deal with;
👉 The hype wasn’t natural both – a bunch of the identical X accounts that hyped Davis’ previous tasks began shilling YZY;
👉 YZY launched with barely any liquidity, which brought on a fast worth enhance earlier than liquidity shifted and insiders dumped. This additionally occurred with LIBRA;
👉 And the timing was the ultimate pink 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’ll be able to perceive why your degen buddy gained’t shut up about it immediately (and you may 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 among the riskiest bets in crypto.
👉 Most haven’t any product, roadmaps, or actual utility, and their worth relies upon totally on hype;
👉 Insiders and early patrons normally 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. In the event you’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 mates – they in all probability don’t know. I ponder who may repair that… 😃🫵
Unfold the phrase and be the hero you might be!
