On August 21, 2025, the cryptocurrency world was shaken by the launch of the YZY Meme coin, a new digital token created by none other than Kanye West—now known simply as Ye. The debut of Ye’s token on the Solana blockchain unleashed a frenzy that felt almost surreal, even by crypto’s wild standards. Within just 40 minutes, the coin’s market capitalization soared to a staggering $3 billion before crashing back down to $1.05 billion, according to data cited by 99Bitcoins. The spectacle was reminiscent of other headline-grabbing memecoin launches, but YZY’s meteoric rise and equally swift fall left traders and onlookers questioning the sustainability—and legitimacy—of the celebrity memecoin craze.
Ye himself promoted the token energetically on X, formerly Twitter, declaring, “A NEW ECONOMY, BUILT ON CHAIN.” He added, “The official YZY token just dropped,” setting off a wave of speculation. High-profile traders, including leveraged trader James Wynn and BitMEX co-founder Arthur Hayes, jumped in, further fueling the hype. Wynn, for instance, boasted, “Aped $YZY on a 60% pull back. $TRUMP ran from $4bn to $15bn in 28 hours. 4x.” The reference to Trump’s own memecoin was no accident—Donald Trump’s $TRUMP token had previously stunned the market with its own rapid ascent, reaching a market cap of $1.7 billion and daily trading volumes in the hundreds of millions, as outlined by HappyCoin Club.
But the excitement around YZY quickly gave way to suspicion. On-chain analysts, including Coinbase director Conor Grogan, raised red flags about the token’s distribution. Grogan revealed that insiders initially held 94% of the YZY supply, with one wallet alone controlling 87% before dispersal. “At least 94% of the supply was insider-held,” Grogan stated. This lopsided control led to fears of manipulation and a classic pump-and-dump scenario. According to Lookonchain, the liquidity structure gave developers disproportionate control over sales, raising further questions about the token’s integrity.
The early trading activity around YZY was as dramatic as its price swings. One trader reportedly spent $24,000 in Solana priority fees to secure $3.4 million in gains, while another pocketed $6 million at the peak. Not everyone was so lucky—a user who mistakenly bought the wrong contract lost $710,000, though they later managed to recover by switching to the correct one. The volatility, while potentially lucrative for a select few, left many participants nursing losses and wondering if they’d been caught up in a speculative trap.
The YZY token’s trajectory was not unique. Just months earlier, the Melania Meme Coin—another celebrity-inspired token—had captivated the market with its blend of political intrigue and meme culture. Launched during Donald Trump’s inauguration as a playful tribute to Melania Trump, the coin surged to $8.49 and a $1.4 billion market cap when Trump returned to the White House. Early buyers saw 100x returns, but the party didn’t last. In June 2025, a $35.7 million insider sell-off triggered a catastrophic price drop, slashing the token’s value by 98% to just $0.21 as of August 21, 2025, with daily trading volumes falling below $10 million, as reported by Blockchain Magazine.
The Melania Meme Coin, like YZY, was dogged by concerns over insider control and market manipulation. Team wallets held significant portions of the coin, and the project lacked any official endorsement from Melania Trump herself. The collapse was swift and brutal, wiping out billions in value and leaving most investors in the red. Analysts remain divided on whether $0.21 represents a price floor or a trap for new buyers, with some pointing to oversold RSI indicators and whale accumulations as signs of potential recovery. Others warn that regulatory scrutiny—especially from the SEC, which is monitoring celebrity-linked tokens without official backing—could spell further trouble.
These high-profile cases are just the latest chapters in the ongoing saga of memecoins. As HappyCoin Club explains, memecoins are cryptocurrencies dedicated to internet memes, celebrities, political events, or cultural phenomena. They are typically created for fun, with little or no practical value, and are notorious for their volatility. The genre’s poster child, Dogecoin (DOGE), was launched in 2013 as a joke about a Shiba Inu dog but has since become a staple of the crypto landscape. Political memecoins like OFFICIAL TRUMP (TRUMP) and celebrity tokens such as The Mad Man (OZZY) and Hulkmanaia (HULK) have followed, each capturing the public’s imagination—at least temporarily.
Yet, beneath the surface-level excitement lies a sobering reality. Memecoins are highly speculative, with price swings that can see tokens lose 80% or more of their value in days. HAWK, another memecoin, dropped 82% in less than three days. According to a Dune Analytics study cited by HappyCoin Club, 60% of memecoin traders end up losing money, while only 0.5% manage to pocket gains of more than $10,000—often insiders or so-called crypto whales with the means to manipulate prices. The vast majority of participants either break even or earn negligible profits.
The creation of memecoins has never been easier. Services like Pump.fun, Bonk.fun, and Coin Factory let anyone with a crypto wallet and a catchy idea launch their own token in minutes. The competition is fierce: tens of thousands of new coins are created daily, forcing creators to resort to increasingly outlandish marketing stunts. The team behind Green Dildo Coin (DILDO) famously paid people to throw green dildos onto basketball courts during WNBA games, a move that doubled the coin’s price in a month. But for every viral success, there are countless tokens that fade into obscurity, taking investors’ money with them.
The risks have led to growing skepticism within the crypto community. Ethereum creator Vitalik Buterin has dismissed meme tokens as distractions that siphon investment from more meaningful blockchain projects. Nick Carter, a partner at Castle Island Ventures, believes the peak of memecoin mania has passed. “Memcoins are definitely dead. They're obviously not going away, but we're not going to see the same trading volumes,” Carter said, reflecting a broader sentiment that the gold rush days may be over—even if the coins themselves persist.
Still, the allure of quick riches and the thrill of viral fame keep the memecoin engine running. For some, the volatility and risk are features, not bugs. Forums continue to buzz with speculation about the next big pump, and hopeful traders scour social media for hints of celebrity endorsements or political tailwinds. But as the stories of YZY, Melania Meme Coin, and countless others illustrate, today’s meme-fueled bonanza can turn into tomorrow’s cautionary tale in the blink of an eye.
As the dust settles from the latest memecoin rollercoaster, one thing remains clear: in the unpredictable world of crypto, fortunes can be made and lost in minutes, and the line between innovation and speculation has never been thinner.
