Hyperliquid, a leading decentralized crypto derivatives exchange, has listed a perpetual contract for YZY, the meme token launched by popular rapper Kanye West. The listing came after community requests allowing traders to long or short YZY with up to 3x leverage.
The launch drew fast activity with trading volume crossing $12.6 million and open interest above $6.5 million in hours. The figures show early demand for exposure to the token without holding it directly.
Risks, Liquidity, and Insider Control
The exchange also issued a warning against the token alongside the listing announcement. It said YZY carries low liquidity and high volatility risk. In perpetual markets, leveraged trades face higher risk of liquidation, making the market risky for casual users.
Moreover, a Coinbase executive noted that about 94% of YZY is linked to insiders. At one point, 87% sat in a single multisig wallet before being moved. This level of control raises the chance of sharp price moves.
Speculation and Market Hype
The trading records on YZY token also point to early insider profits. One wallet was bought cheaply and later sold for more than $3.4 million. Moves like this are common in new memecoins, where speculation drives early cycles.
A well-known trader Machi Big Brother has also taken a position on XYZ as per Lookonchain. He opened a leveraged long worth around $613,000, holding 570,000 YZY. His entry added fuel to debate on how long the hype can last.
The YZY perpetual contract shows how meme tokens are entering derivatives markets. It gives traders another way to speculate or hedge. The next test will be whether YZY can keep steady volume after the first rush. Traders are watching to see if the token can outlast the early hype.
Also Read: Millions Wiped Out as Kanye West’s YZY Memecoin Collapse
