TL;DR
- Insider Link: Same treasury wallet tied to $23M profits from YZY and LIBRA token launches.
- Tactics: Early buys before public access enabled rapid multi-million gains, suggesting advance knowledge.
- Impact: Over 60% of YZY traders lost money, highlighting risks in celebrity-driven token markets.
An on-chain investigation has uncovered a striking connection between wallets profiting from Kanye West’s YZY token launch and a previous windfall from the LIBRA token. The findings, shared by pseudonymous analyst Dethective, suggest coordinated insider activity that netted nearly $23 million across both events, raising concerns over fairness in celebrity-driven crypto markets.
A wallet managed to buy $250K of $YZY at a $206M
It secured about $1M profit, which was then sent to a treasury wallet.
The same wallet also received ~$20M from another lucky sniper who only traded one coin: $LIBRA
The 23M extraction story on this thread🧵 pic.twitter.com/bNZibuzbhU
— dethective (@dethective) August 21, 2025
Early Advantage in YZY Launch
During the YZY debut, one wallet secured $250,000 worth of tokens at $0.20 each, while most traders paid over $1. This early access enabled a rapid sell-off for nearly $1 million in profit within eight minutes. The profits were subsequently moved to a treasury wallet, which was later associated with the LIBRA launch that occurred six months prior.
LIBRA Connection and Repeat Tactics
In the LIBRA situation, two wallets made similar early purchases before the public could access them. One wallet took out about $9 million, while the other took out $11.5 million, with both sending their earnings to the same treasury wallet associated with YZY. The pattern, appearing only during these launches, investing large sums instantly, and exiting quickly, points to advanced knowledge of token release mechanics.
Insider Advantage and Market Impact
Dethective argues that such precision is unlikely without insider information. The wallets did not engage in broader trading activity, focusing solely on these high-profile launches. Since then, funds have shifted to platforms like Kamino and exchanges like Binance. This raises questions about whether “celebrity coins” are being used to transfer wealth from retail traders to well-prepared insiders.
Trader Losses and Community Concerns
Research by Defioasis indicates that more than 60% of YZY traders experienced financial losses. Of 56,050 wallets active in one day, many “only buying” accounts may have been fake to inflate activity, while “only selling” wallets were often linked to large holders or insiders.
Of those who bought and sold, only 38% made a profit, and most earned less than $500. A handful of wallets made over $10,000, and five exceeded $1 million in gains, underscoring the disparity between insiders and average participants.
