YZY token aftermath sees 105 traders lose $100k-$1M each in $75M wipeout

Kanye West’s YZY token launch has left 105 traders with significant losses between $100,000 and $1 million each, totaling $26 million in combined losses at an average of $250,000 per wallet.

According to data shared by Bubblemaps analysis published on Aug. 27, 70,201 traders interacted with the token, resulting in 51,862 tanking losses.

West’s controversial token launch on Solana reached a market capitalization over $3 billion before collapsing by over 90% within hours.

Data reveals stark inequality in outcomes, with only 11 wallets (0.015%) generating profits exceeding $1 million each. These successful traders captured $18.9 million in combined gains.

The loss distribution shows that traders with larger positions bore the heaviest burden. Wallets losing between $10,000 and $100,000 totaled roughly $25.4 million, with 917 addresses sharing an average loss of $27,700.

An additional 4,244 traders lost between $1,000 and $10,000, with an average loss of $3,000, resulting in over $13 million.

At the extreme end, three traders each lost more than $1 million, resulting in a combined loss of $5.07 million.

Only 1% of wallets earned substantial profits

Of the 70,201 traders, only 18,333 achieved profitability, representing 26% of total participants.

Yet, nearly 86% of them generated profits of up to $1,000, totaling around $1.65 million, with an average profit of $105 for each trader in this cohort.

Less than 1% (642 wallets) of the traders generated profits exceeding $10,000 each, capturing a combined gain of $58.8 million, which represents nearly 88% of the total profits. Additionally, 88 traders earned between $100,000 and $1 million each, totaling $24.9 million.

Contributing to traders’ losses were structural disadvantages, including 94% insider-controlled initial supply and prohibitive fee structures.

The YZY pool operated with a 1% base fee that quickly adjusted to 2.68%; combined with slippage costs, this resulted in an estimated 10% round-trip trading cost for participants.

The YZY trading data serves as a stark reminder of memecoin market conditions, where substantial gains are transferred to only a small fraction of traders, who are often insiders or sophisticated token snipers.

Mentioned in this article