Recent onchain investigations have uncovered a significant link between the YZY sniper wallet and the LIBRA token extraction scheme, highlighting potential insider trading in the ecosystem. This connection raises questions about transparency and regulation in crypto markets.
YZY Sniper wallet and LIBRA Connection
An anonymous analyst, Dethective, identified a wallet that sniped the Kanye West-themed token YZY, buying $250,000 worth at just $0.20. Within minutes, this wallet secured over $1 million in profit before funneling funds into a treasury wallet.
Massive Profits and Insider Knowledge
The same treasury wallet received large sums from wallets associated with LIBRA’s launch six months prior, indicating coordinated activity. In total, nearly $23 million was extracted across both token launches, with funds moving to platforms like and Kamino.
Onchain Verification by Experts
Blockchain analytics platforms Nansen and Cyvers confirmed the overlap between the YZY sniper wallet and wallets linked to LIBRA’s extraction network. Cyvers stated, "The YZY launch sniper wallet does overlap with the LIBRA extraction flow wallets," suggesting a single actor or closely linked group behind both events.
Implications for Insider Trading and Market Manipulation
Dethective emphasized that the trader's focus on only $YZY and $LIBRA tokens, combined with large trading sizes, points to inside information being exploited for profit. This pattern underscores ongoing risks of insider activity in crypto launches.
Notable Figures and Historical Context
Nansen highlighted that Naseem, known for profiting from Trump memecoins, was among early buyers of YZY using funds linked to previous profits, fueling speculation about sharp trading versus broader manipulation.
YZY Token Surge and Market Impact
Kanye West’s YZY token launched on Solana, rapidly reaching a $3 billion market cap within 40 minutes before dropping to around $1 billion. The token's volatility exemplifies hype-driven trading prevalent in recent crypto launches.
YZY Token's Future and Web3 Ecosystem Influence
West announced YZY as part of a new economy built on blockchain, aiming to facilitate transactions within his proposed "YZY MONEY" system. The event underscores how celebrity-driven tokens continue to shape Web3 dynamics amidst regulatory scrutiny.This case emphasizes the importance of onchain analytics in detecting insider trading and manipulation within crypto markets. As Web3 ecosystems evolve, transparency will be critical for investor confidence and regulatory compliance.
