YZY Token Sniper Wallet Linked to $21M LIBRA Insider Scheme
Onchain analysis by Detective and Lookonchain uncovered a sniper wallet behind Kanye West’s Solana-based YZY token. It executed an alleged $21M insider trading operation tied to the LIBRA token launch. The wallet acquired $250K of YZY tokens at $0.20 each—well below market price—and sold them minutes later, netting over $1M in profit. Proceeds went to a treasury address previously funded with $21M from LIBRA sniper wallets. The YZY token price plunged over 60% after rallying to a $3B market cap, now trading near $1. The case mirrors past Solana memecoin sniping incidents and could trigger heightened regulatory scrutiny of DeFi token sales. Traders should watch YZY token liquidity and potential policy responses.
Bearish
The revelation of insider trading in the YZY token, with significant profits from an alleged $21M LIBRA scheme, erodes trust in the token’s fairness. The YZY token price has already collapsed over 60% post-launch, reflecting market reaction. In the short term, increased selling pressure may persist as traders offload riskier memecoins. Long term, potential regulatory scrutiny of DeFi token sales could dampen speculation and liquidity, further weighing on YZY token performance. Overall, this incident signals a bearish outlook for the YZY token.