- Trader loses $500k in 2 hours on Yeezy Money.
- Kanye West provided $34 million liquidity.
- Market volatility risks for meme coins highlighted.
A crypto trader lost $500,000 in under two hours trading the newly launched Kanye West meme coin, Yeezy Money, on the Solana blockchain, showcasing the inherent risks involved.
The incident highlights the volatility in celebrity-driven meme coins, causing significant market fluctuation and sparking caution among traders. No immediate regulatory or strategic changes were announced.
A crypto trader suffered a $500,000 loss while trading Yeezy Money (YZY), a Kanye West-themed meme coin. The loss occurred within two hours, demonstrating the extreme volatility in meme coin markets on the Solana blockchain.
The trader utilized an address tagged 6ZFnRH for transactions. They exchanged 1.55 million USDC for YZY tokens and sold them at a loss. Machi Big Brother took a 3x leveraged long position, showing speculative interest remains.
“Doubling down on $YZY volatility with a 3x long. Risk and reward are why we’re here.”
The trading incident led to a momentary spike in Solana network activity, peaking at over 2,300 transactions per second. The event highlighted the unstable nature of celebrity-driven coins, which can jeopardize financial stability for investors.
YZY’s market cap briefly approached $3 billion before crashing. This fluctuation affected major assets including USDC and Bitcoin, leading to significant losses among speculative traders who had diversified risks across related coins. This sentiment was noted in a Lookonchain status update.
Solana-based DEXs handled most YZY trading, impacting network performance. Cautious sentiment now prevails in the crypto community, warning of meme coin risks. Instability may affect Solana’s transaction costs, impacting broader market pricing.
While regulatory responses remain silent, historical trends show that celebrity-backed coins experience substantial inconsistency post-hype. Meme coins have yet to produce valid long-term financial benefits, compounded by lacking governance features.
