Crypto Scam Day: YZY + LIBRA
yyc trader & Camila Russo
August 21, 2025
gm, Defiers!
Today’s big story:
- Ye (formerly Kanye West) launched the YZY token on Solana, which quickly pumped and dumped, hours after a court unfroze most funds connected to the LIBRA token
In other news:
- xStocks’ $500M volume milestone shows slow start for tokenized equities
- MetaMask debuts mUSD stablecoin in collaboration with Stripe’s Bridge and m0
- GENIUS Act fuels $18B in stablecoin supply growth
- China weighs yuan-backed stablecoins
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We’re back! Here’s what you need to know in web3 today
📈 Markets in the Last 24 Hours
| TICKER | VALUE | 24H | |
|---|---|---|---|
 | Bitcoin | $112,250 | -1.54 % |
 | Ethereum | $4,229.37 | -1.81 % |
 | XRP | $2.89 | -1.27 % |
 | BNB | $839.91 | -0.31 % |
 | Solana | $180.73 | -1.83 % |
 MessariPortals | MINDSHARE Rank | MINDSHARE % Change (7d) |
|---|---|---|
 | MINDSHARE Rank | MINDSHARE % Change (7d) |
 |  | 6.37% |
 |  | -18.56% |
 | | -27.13% |
| Powered by Messari Portals | ||
Today’s Big Story
YZY Pumps and Dumps While Libra Funds Get Unfrozen
Here’s a two‑for‑one on the crypto‑scam beat. In the same 24 hours that a U.S. judge let (most of) the Libra money loose again, Ye (formerly Kanye West) rolled out a Solana memecoin called YZY. A courtroom gives a controversial token team free rein, while a disgraced celebrity launches a coin with T&Cs that literally try to pre‑empt class‑action lawsuits.
Let’s start with YZY. Ye’s official X account posted the contract and a selfie‑video; the project site (“YZY Money”) pitches a token, a payments processor (“Ye Pay”), and a card. YZY ripped to a briefly‑claimed ~$3B fully diluted valuation and over $400M market cap, before falling hard, trading at a $131M market cap at the time of writing.
Under the hood, the structure looks engineered for extraction. The official Terms include a “class action waiver” (“you agree not to initiate, join, or participate in any class action…”), which is… a choice for a fan token.
On‑chain watchdog Lookonchain flagged that only YZY was added to the initial pool (no USDC), a “single‑sided” setup that gives the deployer an easier way to cash out (Meteora’s docs confirm these mechanics exist). Coinbase’s Conor Grogan estimated ~94% of supply started in insider hands, with 87% initially sitting in a single multisig before being fanned out. None of that screams “fair launch.”
Was it even Ye? The post came from his account, but plenty of traders openly wondered if the whole thing was a hack (there’s speculation he sold his account months ago). Regardless, insiders and prepared wallets moved fastest; some booked seven‑figure flips within hours, while late buyers wore the bag.
But it shouldn't be a surprise if it was him. Celebrities struggling to stay relevant often resort to shilling sketchy coins or issuing their own. The real question is, who is even still buying this? Luckily, price action shows, not that many.
No “Irreparable Harm” From Libra 🙄
Now Libra. Back in June, the Southern District of New York froze $57.6M in USDC tied to the infamous $LIBRA token after Argentina’s President Javier Milei hyped it and the price promptly cratered. This week, U.S. District Judge Jennifer L. Rochon vacated that freeze, writing that plaintiffs hadn’t shown “irreparable harm” and noting defendants weren’t acting like “evasive actors.” Translation: the case continues, but the extraordinary remedy is gone for now.
Maybe these two stories more than rhyme. Crypto Twitter was quick to note the timing: within hours of the Libra unfreeze, YZY went live. That’s not proof of involvement, but the structural echoes are hard to miss: Heavy insider allocations, Meteora‑based liquidity, and “trust me bro” launch optics.
What’s the market saying? Despite that eye‑popping first print, YZY’s fast fade to a few‑hundred‑million market cap suggests the new cycle’s retail isn’t blindly chasing celebrity coins. This would’ve spawned a dozen copycats overnight at the height of Solana’s memecoin craze. Now, traders are scarred and choosier. Libra had a big role to play there.
Two takeaways. First, YZY’s launch design (single‑sided LP, concentrated insider ownership, pre‑emptive class‑action waiver) is a walking red flag. Those who buy into that have to know they’re playing musical chairs with fewer chairs than usual. Second, the Libra ruling isn’t an acquittal; it’s a procedural reset. The civil case and other probes are still live, and victims can still win monetary damages.
For now, though, Hayden Davis and associates have a longer leash than many expected, but that may change. Until then, if a fading pop star tells you to buy into “a new economy,” be sure to read the fine print or just sit it out.
With love,
Cami, founder of The Defiant
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Top News in the Past 24 Hours
- XStocks Surpasses $500M in Onchain Volume but Analysts Call It “Symbolic” Decentralized trading platform XStocks crossed $500 million in onchain volume, a milestone the team hailed as proof of growing adoption. But experts warn the figure is largely symbolic—most of the activity comes from test trades and liquidity churn rather than sustained user demand. Critics argue that without deeper market participation, the flashy stat risks being more marketing than substance.
- MetaMask Launches mUSD Stablecoin in Collaboration with Bridge MetaMask has unveiled mUSD, a new stablecoin designed to integrate directly into its wallet ecosystem. Built in partnership with Bridge, the token aims to make payments and DeFi interactions smoother for MetaMask’s 30M+ users. Unlike existing stablecoins, mUSD will have native wallet-level support, potentially positioning it as a default currency within the most widely used crypto wallet.
- GENIUS Act Fuels $18B in Stablecoin Supply Growth in Just One Month The Genius Act, a new U.S. law clarifying rules for dollar-backed stablecoins, has unleashed a surge in supply. More than $18 billion worth of stablecoins were minted in just one month following its passage, marking one of the fastest expansions in the sector’s history. Analysts say the legislation is giving institutions confidence to enter the market, cementing stablecoins as a cornerstone of U.S. crypto policy.
- China Weighs Yuan-Backed Stablecoins to Boost Global Currency Use China’s State Council is preparing to review a policy roadmap later this month that could authorize the issuance and use of yuan‑backed stablecoins for the first time. This would mark a dramatic policy reversal from its 2021 ban on crypto trading and mining. The initiative also positions itself as a strategic effort to expand the yuan’s international role.
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