The post Crypto Rugpull? Arthur Hayes Calls Out Kanye’s $YZY Token After Costly Gamble appeared first on Coinpedia Fintech News

The world-famous Hip-Hop artist, Ye, better known as Kanye West, launched his official crypto, $YZY. According to Nansen Data, within just 40 minutes of its release, the YZY token hit a market capitalization of $3 billion, but it quickly stumbled back to $1.05 billion. Despite the hype, on-chain analysts raised red flags. 

Is YZY Legitimate? Analysts Claim Suspicious

West recently launched the token carefully after denying the promotion of fake currency for $2 million in February. But crypto experts were quick to point out the threats of potential insider trading risks. 

Arthur Hayes, co-founder of BitMEX, reportedly bought into the token, viewing it as a short-term investment. However, the sentiment didn’t last long as he condemned the crypto. He wrote on X, “Oopsie … fam next time pls don’t let me trade shitters like $YZY. Should have just kept two-steppin.” 

Coinbase Expert Verify Insider Trading in YZY

Coinbase director Conor Grogan said that insiders held 94% of the supply, with one wallet initially controlling 87% before distributing to others. 

Grogan said, “At least 94% of the new Kanye token is insider-owned…87% of the new Kanye token was owned by a single multisig  (now dispersed to multiple wallets).”

“3%+ was bought in a single transaction, with size, by assorted (prepared) wallets at market open,” he added. 

.article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; }

.entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; }

.entry ul.article-inside-link li:last-child { display: none; }

  • Also Read :
  •   Exclusive: Altcoin Rally Accelerates With Ethereum, Solana, and XRP Leading 
  •   ,

Blockchain analytics firm Lookonchain also raised concerns, saying, “Multiple insider wallets prepared funds in advance and immediately bought $YZY…Insider wallet 6MNWV8 knew the contract address in advance and even tried buying yesterday.” 

Mixed Reactions from the Traders 

One trader spent $24,000 in Solana priority fees to secure $3.4 million gains, while another pocketed $6 million at peak. Not all were lucky, though. One user mistakenly bought the wrong contract, losing about $710,000. Fortunately, the user later recovered some losses by purchasing the correct contract.

This highlights the extreme volatility and risks involved in the token. It also demonstrates the substantial insider profits reported during the YZY token launch phase.

.article_register_shortcode { padding: 18px 24px; border-radius: 8px; display: flex; align-items: center; margin: 6px 0 22px; border: 1px solid #0052CC4D; background: linear-gradient(90deg, rgba(255, 255, 255, 0.1) 0%, rgba(0, 82, 204, 0.1) 100%); }

.article_register_shortcode .media-body h5 { color: #000000; font-weight: 600; font-size: 20px; line-height: 22px; text-align:left; }

.article_register_shortcode .media-body h5 span { color: #0052CC; }

.article_register_shortcode .media-body p { font-weight: 400; font-size: 14px; line-height: 22px; color: #171717B2; margin-top: 4px; text-align:left; } .article_register_shortcode .media-body{ padding-right: 14px; }

.article_register_shortcode .media-button a { float: right; } .article_register_shortcode .primary-button img{ vertical-align: middle; width: 20px; margin: 0; display: inline-block; }

@media (min-width: 581px) and (max-width: 991px) { .article_register_shortcode .media-body p { margin-bottom: 0; } }

@media (max-width: 580px) { .article_register_shortcode { display: block; padding: 20px; }

.article_register_shortcode img { max-width: 50px; }

.article_register_shortcode .media-body h5 { font-size: 16px; }

.article_register_shortcode .media-body { margin-left: 0px; }

.article_register_shortcode .media-body p { font-size: 13px; line-height: 20px; margin-top: 6px; margin-bottom: 14px; }

.article_register_shortcode .media-button a { float: unset; }

.article_register_shortcode .secondary-button { margin-bottom: 0; } }

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

.subscription-options li { display: none; } .research-report-subscribe{ background-color: #0052CC; padding: 12px 20px; border-radius: 8px; color: #fff; font-weight: 500; font-size: 14px; width: 96%; } .research-report-subscribe img{ vertical-align: sub; margin-right: 2px; }

var templateIds = “6”; var listOfSubscribed = [];

function subscribed_popupmodal(template_id) { var templateId = ‘6’; getAllSubscriberCategoryList([templateId]); var subcribemodal = window.parent.document.getElementById(‘subscribe-modal-design’); if (subcribemodal) { var modalContent = `

Subscribe Now `; subcribemodal.innerHTML = modalContent; } subscribe_unsubscribe_status(template_id); //getAllSubscriberCategoryList(template_id); }

function toggleSubscription(subscription, template_id) { var subscriptionCheckbox = document.getElementById(subscription + ‘_’ + template_id); var li = document.getElementById(subscription + ‘Selected_’ + template_id); if (subscriptionCheckbox.checked) { li.classList.add(‘active’); } else { li.classList.remove(‘active’); } }

function getAllSubscriberCategoryList(getcategoryId) { jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘GET’, data: { action: ‘subscribe_api_ajax_request’, apiurl: ‘/app/email_newsletter/list’, }, success: function(response) { var result = JSON.parse(response.message);

if (result.status === true) { var idstosubscribed = [] // Populate listOfSubscribed with subscribed category IDs result.message.forEach(listofcategory => {

if (listofcategory.subscribe_status === 1) { if (!listOfSubscribed.includes(listofcategory._id)) {

listOfSubscribed.push(listofcategory._id); }

if (!idstosubscribed.includes(listofcategory.news_cp_category_row_id)) { idstosubscribed.push(listofcategory.news_cp_category_row_id); } } });

idstosubscribed.forEach(id => { var subscribeButton = document.getElementById(‘subscribe_’ + id); var unsubscribeButton = document.getElementById(‘unsubscribe_’ + id);

if (subscribeButton && unsubscribeButton) { subscribeButton.style.display = ‘none’; unsubscribeButton.style.display = ‘block’; var showDownloadReport = document.getElementById(‘download_report’);

if (showDownloadReport) { showDownloadReport.style.display = ‘block’; } } }); }

}, error: function(xhr, status, error) { console.error(‘Error:’, error); } }); }

function subscribe_unsubscribe_status(getcategoryId) { var elementTounsubscribe = parent.document.getElementById(‘unsubscribe_’ + getcategoryId); var elementTosubscribe = parent.document.getElementById(‘subscribe_’ + getcategoryId); jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘POST’, data: { action: ‘subscribe_api_ajax_request’, apiurl: ‘/app/email_newsletter/list?category_row_id=’ + getcategoryId, }, success: function(response) { var result = JSON.parse(response.message); if (result.status === true) { parent.jQuery(‘.skeliton-loader-block’).hide(); var hasSubscribeStatusOne = false; result.message.forEach(subscribeStatus => { if (listOfSubscribed.includes(subscribeStatus._id) && subscribeStatus.subscribe_status === 1) { hasSubscribeStatusOne = true; } if (subscribeStatus.notification_type === 3) { parent.document.getElementById(‘monthlySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘monthly_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘monthly_’ + getcategoryId).checked = true; } } else if (subscribeStatus.notification_type === 2) { parent.document.getElementById(‘weeklySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘weekly_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘weekly_’ + getcategoryId).checked = true; } } else if (subscribeStatus.notification_type === 1) { parent.document.getElementById(‘dailySelected_’ + getcategoryId).style.display = ‘block’; parent.document.getElementById(‘daily_’ + getcategoryId).setAttribute(‘data-id’, subscribeStatus._id); if (subscribeStatus.subscribe_status === 1) { parent.document.getElementById(‘daily_’ + getcategoryId).checked = true; } } if (subscribeStatus.subscribe_status === 1) { listOfSubscribed.push(subscribeStatus._id); } }); if (hasSubscribeStatusOne) { elementTosubscribe.style.display = ‘none’; elementTounsubscribe.style.display = ‘block’; } else { elementTosubscribe.style.display = ‘block’; elementTounsubscribe.style.display = ‘none’; } } }, error: function(xhr, status, error) { console.error(‘Error:’, error); } }); }

function logSelectedSubscriptions(categoryid) { var unsubscribemodal = document.querySelector(‘.unsubscribed-popup-modal .modal’); var subscribedmodal = document.querySelector(‘.subscribed-popup-modal .modal’); unsubscribemodal.innerHTML=”; subscribedmodal.innerHTML=”; var selectedSubscriptions = []; var storeCheckedId = []; var checkboxes = document.querySelectorAll(‘#subscription-options-‘ + categoryid + ‘ input[type=”checkbox”]’); var errorMessage = document.getElementById(‘error-message-select’);

// Use a Set to handle unique data-ids var uniqueSubscribedIds = new Set(listOfSubscribed);

checkboxes.forEach(function(checkbox) { var dataId = parseInt(checkbox.getAttribute(‘data-id’)); if (checkbox.checked) {

selectedSubscriptions.push(checkbox.id); storeCheckedId.push(dataId); } else {

uniqueSubscribedIds.delete(dataId); // Remove unchecked data-id } });

// Update listOfSubscribed with unique values listOfSubscribed = Array.from(uniqueSubscribedIds);

var selectedSubscriptionsString = selectedSubscriptions.join(‘, ‘); var concatinateSubscribeId = […new Set(storeCheckedId.concat(listOfSubscribed))];

var categoryData = { ‘subscribed_categories’: concatinateSubscribeId };

var requestSubscriberData = { action: ‘handle_dynamic_api_request_with_headers’, security: ‘6094d68162’,

endpoint: ‘/app/email_newsletter/update_categories’, token: ”, data: categoryData };

jQuery.ajax({ url: ‘https://coinpedia.org/wp-admin/admin-ajax.php’, type: ‘POST’, data: requestSubscriberData, beforeSend: function(xhr) { xhr.setRequestHeader(‘X-Requested-With’, ‘XMLHttpRequest’); }, success: function(response) { try { response = response.data;

if (storeCheckedId.length === 0) { var unsubcribedPopUpmodal =

` We’re sorry to see you go! Your subscription has been canceled. If you change your mind, you can re-subscribe anytime. Thank you for being part of our community!

`; unsubscribemodal.innerHTML = unsubcribedPopUpmodal; document.querySelector(‘#subscribe-modal-design .modal’).style.display = ‘none’; unsubscribemodal.style.display = ‘block’; unsubscribemodal.classList.remove(‘hide’); unsubscribemodal.classList.add(‘show’); document.getElementById(‘subscribe_’ + categoryid).style.display = ‘block’; document.getElementById(‘unsubscribe_’ + categoryid).style.display = ‘none’; var showDownloadReport = document.getElementById(‘download_report’); if (showDownloadReport) { showDownloadReport.style.display = ‘none’; }

} else { var subscribedPopupModal = ` Thank you for subscribing to our crypto and blockchain newsletter! You’ll now receive the latest news, insights, and updates straight to your inbox. Welcome to our community!

`; let selectedSubscriptionsArray = selectedSubscriptionsString.split(‘,’); let subscribedCategories = selectedSubscriptionsArray.map(subscription => subscription.split(‘_’)[0]); let subscribedCategoriesString = subscribedCategories.join(‘, ‘);

subscribedmodal.innerHTML = subscribedPopupModal; if (document.getElementById(‘selectidname’)) { document.getElementById(‘selectidname’).textContent = subscribedCategoriesString; }

document.querySelector(‘#subscribe-modal-design .modal’).style.display = ‘none’; subscribedmodal.style.display = ‘block’; subscribedmodal.classList.remove(‘hide’); subscribedmodal.classList.add(‘show’); document.getElementById(‘subscribe_’ + categoryid).style.display = ‘none’; document.getElementById(‘unsubscribe_’ + categoryid).style.display = ‘block’; var showDownloadReport = document.getElementById(‘download_report’); if (showDownloadReport) { showDownloadReport.style.display = ‘block’; }

} } catch (e) { console.error(‘Error parsing response:’, e); } },

}); } function closeModal(template_id) { var modalId = template_id; var modal = document.querySelector(‘#’ + modalId); // Using querySelector to find the modal

if (modal) { modal.classList.add(‘hide’); modal.classList.remove(‘show’); setTimeout(function() { modal.style.display = ‘none’; }, 500);

} else { console.warn(‘Modal not found:’, modalId); } }

function closeunsubscribemodal() { var unsubscribemodal = document.querySelector(‘.unsubscribed-popup-modal .modal’);

if (unsubscribemodal) { unsubscribemodal.classList.add(‘hide’); unsubscribemodal.classList.remove(‘show’); } setTimeout(function() { unsubscribemodal.style.display = ‘none’; }, 500); }

function closesubscribemodal() { var subscribedmodal = document.querySelector(‘.subscribed-popup-modal .modal’); setTimeout(function() { subscribedmodal.style.display = ‘none’; }, 500); if (subscribedmodal) { subscribedmodal.classList.add(‘hide’); subscribedmodal.classList.remove(‘show’); } }

function withoutLoginClicked(withoutlogin_id) { localStorage.setItem(‘subscribe_without_Login’, ‘true’); localStorage.setItem(‘subscribe_clicked_id’, withoutlogin_id); }

document.addEventListener(‘DOMContentLoaded’, function() { const subscribewithoutData = localStorage.getItem(‘subscribe_without_Login’); const subscribe_clicked_cat_id = localStorage.getItem(‘subscribe_clicked_id’);

// Function to get cookies function getCookie(name) { let value = “; ” + document.cookie; let parts = value.split(“; ” + name + “=”); if (parts.length == 2) return parts.pop().split(“;”).shift(); }

// Get user token from cookies const userToken = getCookie(‘user_token’);

if (subscribewithoutData === ‘true’ && userToken) { // Call the modal function with the category ID subscribed_popupmodal(subscribe_clicked_cat_id);

// Remove the flag and category ID from localStorage localStorage.removeItem(‘subscribe_without_Login’); localStorage.removeItem(‘subscribe_clicked_id’); } });

/************************** update susbcriber content **************************** */ function initializeSubscriptionButton() { var initialListItems = document.querySelectorAll(‘.subscription-options input[type=”checkbox”]’); initialListItems.forEach(function(item) { console.log(item.checked, ‘Initial Checkbox checked status’); });

var listItems = document.querySelectorAll(‘.subscription-options li’); if (listItems.length === 0) return;

var anyActive = false; listItems.forEach(function(item) { var checkbox = item.querySelector(‘input[type=”checkbox”]’); if (checkbox) { if (checkbox.checked) { item.classList.add(‘active’); anyActive = true; // Set anyActive to true } else { item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked } } });

} function updateButtonText(anyActive) { var subscribeButtonSpan = document.querySelector(‘.subscribe-submit .changeBtnText’); if (subscribeButtonSpan) { if (anyActive) { subscribeButtonSpan.textContent = ‘Subscribe Now’; } else { subscribeButtonSpan.textContent = ‘Unsubscribe’; } } }

function updateSubscriptionButton() { var listItems = document.querySelectorAll(‘.subscription-options li’); if (listItems.length === 0) return;

var anyActive = false; listItems.forEach(function(item) { var checkbox = item.querySelector(‘input[type=”checkbox”]’); if (checkbox) { if (checkbox.checked) { item.classList.add(‘active’); anyActive = true; // Set anyActive to true } else { item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked } } });

// Update the button text based on whether any list item has the ‘active’ class updateButtonText(anyActive); } document.addEventListener(‘click’, function(event) { var clickedItem = event.target.closest(‘.subscription-options li’); if (clickedItem) { var checkbox = clickedItem.querySelector(‘input[type=”checkbox”]’); if (checkbox) { checkbox.checked = !checkbox.checked; updateSubscriptionButton(); } } });

FAQs

Is the $YZY token legitimate?

Analysts raised red flags due to suspicious activity, including a single wallet holding 87% of the supply and significant insider trading.

Who are the insiders in the $YZY token launch?

Coinbase and Lookonchain experts reported that insiders, who held 94% of the supply, knew the contract address in advance and bought large amounts at launch.

What is a “multisig” wallet?

A multisig, or multi-signature, wallet requires multiple private keys to authorize a transaction, offering enhanced security. It was used by insiders to control the $YZY supply.

What is “insider trading” in crypto?

Insider trading is when individuals with privileged information, such as early access to a token contract, use it to make profitable trades before the public can.