Kanye West's YZY memecoin suffers an 81% drop from its summit, leaving more than 50K traders in financial losses.

In the world of cryptocurrency, Penguin memecoins have been making waves, dominating the altcoin season hype. However, a cloud of controversy looms over this memecoin phenomenon, with allegations of insider trading and sniping being levelled against Penguin memecoins. Similar trading patterns have been observed in other celebrity-backed tokens, such as Argentina's LIBRA and Donald Trump's TRUMP.

Recent investigations by Bubblemaps have revealed wallet clusters that resemble coordinated groups in Penguin memecoins, raising further concerns. As of now, Kanye West and his team have not responded to these community concerns or insider-trading allegations.

The memecoin boom, according to an interview with Polygon Labs CEO Boiron, requires curation, not censorship. However, concerns have been raised about YZY's tokenomics. Analysts have noted that liquidity pools were set up in a way that allowed developers to manipulate price action, and that 70-94% of the supply is still insider-controlled through Yeezy Investments LLC.

The quick ascent and subsequent decline of YZY's token are consistent with a trend where celebrity tokens cause retail frenzy but ultimately result in losses for the majority of holders. The profits made from YZY have been concentrated among 11 wallets, which have not been explicitly identified by specific persons or institutions. It is noted that these 11 wallets took 30% of the entire profits made from YZY, while about 74% of investors lost money. There are no clear claims linking these wallets to any known individuals or organisations.

West's shift to cryptocurrency is remarkable given his previous comments calling memecoins "hype-driven scams." As the investigation continues, it remains to be seen whether these allegations will be substantiated or dismissed. The cryptocurrency community awaits West's response and the resolution of these insider-trading allegations.

Kanye West's YZY memecoin suffers an 81% drop from its summit, leaving more than 50K traders in financial losses.