The launch of Kanye West’s YZY token has resulted in significant losses for 105 traders, ranging from $100,000 to $1 million each, totaling $26 million in combined losses with an average of $250,000 per wallet.
As per data shared by Bubblemaps analysis on Aug. 27, out of 70,201 traders who interacted with the token, 51,862 incurred losses.
West’s controversial token launch on Solana saw a market capitalization exceeding $3 billion before plummeting by over 90% within hours.
The data highlights a stark disparity in outcomes, with only 11 wallets (0.015%) reaping profits exceeding $1 million each, totaling $18.9 million in gains.
The distribution of losses reveals that traders with larger positions suffered the most. Wallets experiencing losses between $10,000 and $100,000 amounted to approximately $25.4 million, with 917 addresses sharing an average loss of $27,700.
Furthermore, 4,244 traders faced losses ranging from $1,000 to $10,000, with an average loss of $3,000, totaling over $13 million.
At the extreme end, three traders each incurred losses surpassing $1 million, resulting in a combined loss of $5.07 million.
Only 1% of wallets earned substantial profits
Out of the 70,201 traders, only 18,333 managed to turn a profit, representing 26% of total participants.
However, nearly 86% of profitable traders made gains up to $1,000, totaling around $1.65 million, with an average profit of $105 per trader in this group.
Less than 1% (642 wallets) of traders garnered profits exceeding $10,000 each, accumulating a total gain of $58.8 million, which accounts for nearly 88% of the overall profits. Additionally, 88 traders earned between $100,000 and $1 million each, totaling $24.9 million.
Factors contributing to traders’ losses included structural disadvantages such as the 94% insider-controlled initial supply and high fee structures.
The YZY pool operated with a 1% base fee that swiftly rose to 2.68%; coupled with slippage costs, participants faced an estimated 10% round-trip trading cost.
The YZY trading data serves as a poignant reminder of the challenges within the memecoin market, where substantial gains are often concentrated in the hands of a select few traders, typically insiders or savvy token snipers.
