Kanye West's YZY Coin Collapses After Insiders Cash Out

Kanye West’s X account announced Wednesday the launch of YZY coin, triggering $740 million in trading within hours, according to Nansen. The coin’s paper valuation briefly hit $3 billion before collapsing by two-thirds, leaving retail investors with more than $20 million in losses.

Nansen reported that within one minute of launch, eight wallets purchased over $90,000 each, then rapidly exited for large profits. One trader turned $500,000 into $1.77 million in under ten minutes, while most other participants were left holding losses.

The YZY coin is presented as part of a “YZY Money” ecosystem, including a payments service and debit card. Its supply distribution shows 20% released, 10% pooled on exchanges, and 70% locked with Delaware-registered Yeezy Investments LLC for three months.

Analysts noted the trading pattern mirrors Donald Trump’s TRUMP meme coin debut earlier this year, raising concerns of insider coordination. Nicolai Søndergaard of Nansen said concentrated token ownership and timed unlocks could lead to future selloffs that hit small investors hardest.

MetaMask Launches mUSD Stablecoin With Card Plans

MetaMask has introduced mUSD, a dollar-backed stablecoin issued by Stripe subsidiary Bridge, designed to integrate throughout its wallet ecosystem. The token will first launch later this year on Ethereum and Linea, with full compliance under the GENIUS Act. MetaMask said mUSD aims to simplify crypto on- and off-ramps while creating a liquidity layer across DeFi.

The wallet developer also plans to enable mUSD as a payment option for its upcoming debit card powered by Mastercard. Ajay Mittal, MetaMask’s VP of product strategy, said mUSD’s native integration will provide smoother transactions and lower costs compared to competing stablecoins. While no yield will be paid directly, MetaMask hinted at possible future incentive programs tied to mUSD use.

DBS Bank Tokenizes Structured Notes on Ethereum

Singapore’s DBS Bank announced it will tokenize structured notes on Ethereum, marking its first digital issuance for institutional clients. The bank partnered with ADDX, DigiFT, and HydraX to distribute the notes, which will be accessible to accredited investors. DBS said its first product is a crypto-linked note designed to deliver payouts when digital asset prices rise.

Each tokenized note represents a $1,000 slice of the larger instrument, lowering barriers for participation while retaining institutional-grade safeguards. DBS said its clients executed over $1 billion worth of similar notes in the first half of 2025, showing strong demand. The bank also plans to tokenize RWAs like equity- and credit-linked notes in future offerings.

Wormhole Counters LayerZero’s Stargate Takeover Offer

The Wormhole Foundation moved to counter a $110 million acquisition proposal by LayerZero for Stargate, the cross-chain bridge originally launched by LayerZero. Under that plan, STG tokens would be swapped for ZRO and the Stargate DAO dissolved, a deal LayerZero said would strengthen its ecosystem. Wormhole argued the offer undervalues Stargate and called for a pause in the ongoing community vote.

Wormhole pointed to Stargate’s strong revenues, $92 million treasury, and $4 billion in monthly bridging volume as reasons the bid was too low. It also noted that LayerZero and Stargate share cofounders, raising governance concerns. Wormhole said it will present a competing offer soon, fueling speculation of a bidding war over one of crypto’s most active bridges.

Data of the Day

Glassnode reported that crypto markets are showing late-cycle behavior, with capital inflows into Bitcoin slowing even as it hit $124,400. Open interest across altcoins recently surged to $60 billion before a sharp $2.6 billion correction, highlighting high leverage. Ethereum’s share of perpetual futures volume has now reached a record 67%, signaling increased speculation in altcoins.

The firm noted that long-term holders have realized profit levels similar to past cycle peaks, while realized losses remain modest. Profit-taking has declined since Bitcoin’s July high, suggesting demand fatigue rather than heavy selling. Analysts warn the combination of slowing inflows and high leverage could increase volatility as markets near a cyclical turning point.

More Breaking News

• DOJ official Matthew Galeotti said writing code without ill intent is not a crime, signaling a shift in federal prosecutorial stance after the Tornado Cash verdict.
• Gemini secured a MiCA license in Malta, enabling it to roll out crypto trading products across more than 30 EU jurisdictions under the new harmonized regulatory framework.
• Coinbase added Trump-linked stablecoin USD1 to its listing roadmap, with trading launch contingent on sufficient liquidity support and technical infrastructure for market readiness.
• Windtree Therapeutics touted plans for a $200 million BNB treasury but now faces Nasdaq delisting after its shares fell below the $1 minimum bid requirement.
• ZachXBT revealed a scammer posing as hardware wallet support stole 783 BTC worth $91 million through a social engineering attack on August 19.
• A Bitcoin whale sold $113 million in BTC to fuel a $240 million Ether long, holding 55,700 ETH amid Hyperliquid price dislocation.

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