Kanye West's issuance of YZY fell by 90%, causing investors to be played for suckers out of 26 million dollars! 94% of the tokens are controlled by insiders, and 11 wallets profited over a million.

Kanye West's YZY Token on the Solana chain experienced a big dump, with its market capitalization crashing 90% from $3 billion, resulting in 105 investors losing between $100,000 to $1 million each, totaling a loss of $26 million. Bubblemaps chain data shows that out of 70,201 traders, 51,862 incurred losses, with only 0.015% of wallets (11) profiting over $1 million. This article provides an in-depth analysis of how high transaction fee structures and insider supply distribution led to this Memecoin massacre, offering investors a memecoin risk identification guide.

[Disaster Data: The Pyramid Loss Structure is Shocking]

According to the on-chain analysis report by Bubblemaps on August 27, YZY Token traders' losses show a typical pyramid structure:

Top loss tier: 3 traders each lost over $1 million, with a total loss of $5.07 million.

Loss layer for large holders: 104 traders lost between 100,000 to 1,000,000 USD, with an average loss of 250,000 USD.

Mid-level losers: 917 wallets lost between $10,000 and $100,000, with an average loss of $27,700.

Retail losers: 4,244 traders lost between $1,000 and $10,000, with total losses exceeding $13 million.

【The Truth of Profit: The Harsh Reality of 1% Wallets Harvesting 88% Profit】

Among all 70,201 participants, only 26% (18,333 people) made a profit, but among them:

1. 86% of profit-makers earn less than $1000, with an average profit of only $105.

2, 642 wallets (less than 1%) made a profit of over $10,000, with a total profit of $58.8 million.

3. Eleven internal wallets each made over 1 million dollars in profit, with a total profit of 18.9 million dollars.

This distribution model exposes the typical characteristics of "whale harvesting retail investors" in the Memecoin market.

[Mechanism Trap: Double Strangulation of High Transaction Fees and Supply Control]

Insider Supply Monopoly: 94% of the initial Tokens are controlled by insiders, creating artificial scarcity to pump prices.

Fee Trap: The trading pool sets a 1% base rate and quickly adjusts to 2.68%, with slippage costs causing the bidirectional trading cost to reach as high as 10%.

Advantages of sniper robots: Professional token snipers leverage technical advantages to build positions ahead of ordinary investors.

[Comparison with Bitcoin ETF: The stark difference between structured products and wild coins]

Just as the Bitcoin spot ETF in the U.S. provides investors with a transparent investment channel regulated by the SEC, Memecoins like YZY are showing a completely opposite extreme:

Bitcoin ETF: Daily disclosure of positions, transparent fee structure, clear obligations of market makers.

Memecoin: Zero regulation, code may contain backdoors, liquidity can be withdrawn at any time. This comparison reveals the polarized investment environment in the crypto market.

[On-chain Data Alert: Three Red Alerts from Bubblemaps Analysis]

1. Token distribution concentration: The top 10 wallets control over 90% of the supply.

2. Liquidity pool lock abnormality: Most of the liquidity is not locked as required.

3. Trading time pattern: Large purchases usually occur within 15 minutes before public trading.

[Investor Defense Strategy: Five Steps to Identify Memecoin Traps]

1. Check allocation: Use Bubblemaps or Etherscan to analyze Token distribution concentration.

2. Verify liquidity: Confirm whether the LP Token is locked and the duration of the lock.

3. Calculate the cost: Calculate the actual trading fee rate (base fee + slippage)

4. Avoid celebrity endorsements: Be wary of tokens endorsed by celebrities, as historical data shows that 93% ultimately go to zero.

5. Control position: Memecoin investment should not exceed 1% of the investment portfolio.

[Conclusion: Observing the big dump of YZY to see the differentiation in the maturity of the crypto market]

As the daily trading volume of Bitcoin ETFs surpasses 10 billion USD, the YZY incident reveals a primitive and savage side of the crypto market. It is recommended that investors adhere to the three principles of "investing only in projects with fully open-source code, real-name teams, and locked liquidity." When participating in Memecron speculation, be sure to set stop-loss limits and recognize that this is essentially a zero-sum game—most participants are destined to become the harvested leeks.