Kanye West's entry into cryptocurrency through the YZY token on Solana has exposed a sophisticated insider trading operation that netted connected individuals millions while leaving retail investors with substantial losses. On-chain analysis reveals the same wallets that profited from TRUMP and LIBRA tokens dominated YZY's August 21 launch, with one associate publicly bragging about earning $160,000 in the first ten minutes.
What to Know:
- YZY token generated $50.4 million in profits for top 500 wallets while 16,000 smaller wallets lost more than $10 each
- Mikey Shelton, a Stanford-connected associate of Kanye West, posted Instagram stories celebrating six-figure gains within minutes of launch
- The same traders who made over $100 million on TRUMP tokens appear as first buyers in YZY, suggesting coordinated insider access
The Numbers Behind The YZY Launch
The YZY token went live on August 21, 2025, reaching a $3 billion market cap within 40 minutes before dropping to roughly one-third of that value. Blockchain analytics firm Nansen tracked 62,465 wallets that traded the token on its debut day.
The data reveals stark disparities in outcomes. The top 500 profitable wallets realized $50.4 million in gains, with the largest single profit reaching $3 million. Meanwhile, losing wallets accumulated $21.4 million in losses, with one trader losing $1.3 million.
Only 9,413 wallets managed to book profits exceeding $10. Nearly 16,000 wallets recorded losses greater than $10. The liquidity pool earned $10 million in fees during this period.
Mikey Shelton's Role And Stanford Connection
Mikey Shelton emerged as a central figure in the controversy after posting Instagram stories celebrating his profits. One story, displayed over a black screen, simply read "Best day." Attached was a chat message stating: "We made $160k in first 10 min. Still haven't sold just under $300."
Shelton's connection to Kanye West dates to February 2025, when West shared a conversation telling Shelton: "You are the brand. Whatever it is will do well. Some things are better than others. It's about who you trust."
Shelton's online presence raises additional questions. His Twitter account has remained inactive since August 2023, while his Instagram profile stays private. His Instagram biography references both Baylor University and Stanford University, suggesting educational credentials that contrast with the alleged pump-and-dump operation.
Blockchain Evidence Links Multiple Celebrity Tokens
On-chain investigators uncovered connections between YZY and previous celebrity token launches. Blockchain detective "Dethective" identified two "sniper" wallets that extracted $23 million across YZY and LIBRA tokens combined.
These wallets showed preparation before launch and moved large amounts through liquidity pools. Significantly, they targeted only YZY and LIBRA tokens, avoiding other available options, which suggests inside knowledge rather than speculative trading.
Bubblemaps analysis revealed that the first YZY buyer was "Naseem," the same trader who generated over $100 million from TRUMP tokens earlier in 2025. This wallet made an initial $250,000 purchase on August 21 and has since realized $800,000 in profits while maintaining $600,000 in holdings.
The pattern extends across multiple celebrity launches. Analysts found consistent early access patterns linking TRUMP, LIBRA, and YZY tokens, raising questions about organized insider groups operating across celebrity cryptocurrency launches.
Understanding Cryptocurrency Terms And Market Mechanics
Several technical concepts explain how this operation functioned. "Sniping" refers to automated trading that captures tokens immediately upon launch, often within seconds of contract deployment. Liquidity pools are smart contracts that facilitate token trading by providing buy and sell options.
Market capitalization represents the total value of all tokens in circulation. Pump-and-dump schemes involve artificially inflating a token's price through coordinated buying, then selling at peak values to unsuspecting investors.
Meme coins like YZY typically lack underlying utility beyond speculation and cultural appeal. They often experience extreme volatility, with values rising and falling rapidly based on social media attention and celebrity endorsements.
Closing Thoughts
The YZY token launch demonstrates how celebrity cryptocurrency ventures have become vehicles for insider profit extraction at retail investors' expense. Despite reaching billions in market capitalization, the token's debut primarily enriched a small circle of connected traders while leaving thousands of smaller investors with losses. This pattern mirrors previous celebrity token launches, suggesting systematic exploitation rather than isolated incidents.