A crypto trader experienced a significant financial loss of $500,000 within just two hours of trading Yeezy Money (YZY), a meme coin launched by rapper Kanye West. The sudden downturn, likely fueled by volatility in the highly speculative market of celebrity-backed coins, has prompted concerns among traders about the risks involved. 6ZFnRH, the trader’s address, was linked to the trade. They exchanged 1.55 million USDC for YZY tokens and subsequently sold them at a loss. Machi Big Brother, a prominent figure in the crypto community, took a highly speculative 3x leveraged long position on YZY, showcasing continued interest despite the volatility. The trading event led to a surge in Solana network activity, peaking at over 2,300 transactions per second, highlighting the inherent risk associated with these types of coins. The resulting market fluctuation caused short-term spikes in USDC and Bitcoin prices, impacting investors who held diversified portfolios across related assets, according to Lookonchain data. Solana-based decentralized exchanges (DEXs) played a major role in YZY’s trading volume, contributing to network congestion and potentially affecting transaction costs in the broader crypto market. The event has sparked cautious sentiment in the crypto community, prompting concerns about meme coin risks and their potential for short-term financial instability. While regulatory responses remain silent, historical data suggests that celebrity-backed coins typically experience significant volatility post-hype. Notably, meme coins have yet to deliver long-term financial benefits, lacking clear governance features and relying heavily on hype and speculation.