Kanye's tweet ignites DYDDY frenzy: $160M market cap wiped out overnight, retail investors lose $700K
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Kanye's tweet ignites DYDDY frenzy: $160M market cap wiped out overnight, retail investors lose $700K
Two investors poured in substantial funds due to FOMO, but the DYDDY price quickly plummeted, resulting in combined losses of $698,700.
Navigating Web3 tides with focused insightsBy Luke, Mars Finance
What happened?
In the early hours of May 9, 2025, a dramatic event erupted at the intersection of global entertainment and the cryptocurrency world. Rap superstar and fashion icon Kanye West (now known as Ye) retweeted a post on X that contained the contract address for the meme coin DYDDY.
This seemingly casual retweet acted like a nuclear bomb dropped into the crypto market, instantly igniting speculative frenzy. According to data from on-chain monitoring service OnChain Lens, two investors—let’s call them Address A and Address B—rushed in under FOMO (fear of missing out). Address A spent $632,200 to buy 8.67 million DYDDY tokens, while Address B invested $544,800 to acquire 4.46 million. However, just hours later, DYDDY's price crashed. Address A lost $316,700, and Address B suffered an even steeper loss of $382,000, totaling $698,700 in combined losses.
The backdrop of this turmoil is staggering. DYDDY had existed for only seven hours before Kanye’s retweet, yet its market cap briefly surged to a peak of $160 million, capturing widespread attention. The bubble burst rapidly, however, and as of now, DYDDY’s market cap has shrunk to $37 million—nearly 80% down. On-chain data also revealed something suspicious: a top trader bought in precisely before Kanye’s retweet and pocketed a $1 million profit, sparking allegations of insider trading. Kanye’s tweet not only triggered a speculative frenzy but also exposed the fragility of the meme coin market: celebrity influence, FOMO sentiment, and fundamentally empty tokens culminate in a party destined to collapse. This farce wasn’t just a financial Waterloo for two investors—it was another satire of the crypto world’s speculative culture.
What Is DYDDY: A Meme Narrative Built on Controversy
DYDDY’s creation is nothing short of a “crash-course legend” in the meme coin space. As a typical meme coin, it has no whitepaper, no clear utility, and not even a proper website. Its entire narrative appears centered on one name: Diddy—Sean “Puff Daddy” Combs—the music mogul embroiled in extortion and sex trafficking allegations. The naming of DYDDY seems like a jab at Puff Daddy or perhaps some form of crypto-world “homage,” but such a bold choice feels more like naming your ship Titanic II—both provocative and perilous.
In the world of meme coins, narrative is everything. From Dogecoin’s “doge” face to Shiba Inu’s “successor to doge,” successful meme coins thrive on humor or community culture. DYDDY, however, chose a controversial figure as its selling point, attempting to leverage Puff Daddy’s notoriety and Kanye’s endorsement for hype. Kanye’s tweet instantly ignited this narrative, pushing DYDDY’s market cap to $160 million. But without fundamental support, its weakness quickly emerged. On-chain data shows that many early holders dumped their tokens at the peak, leaving FOMO-driven latecomers with nothing but crashing prices. One user on X quipped: “DYDDY’s only use case is reminding you not to trust celebrity-shilled coins.” The plunge from $160 million to $37 million proves the fate of meme coins: after the heat comes emptiness.
Kanye and Puff Daddy: A Complicated “Brotherhood”
Beneath the DYDDY storm lies the complex and murky relationship between Kanye and Puff Daddy. As two legends in the music industry, their bond goes beyond ordinary friendship. Kanye has repeatedly defended Puff Daddy publicly, even amid the latter’s legal scandals. After Puff Daddy was arrested in 2024 on charges of extortion and sex trafficking, Kanye did not distance himself; instead, he called him his “twin,” and even wore a T-shirt designed by Puff Daddy during a controversial interview. A leaked prison phone call, which Kanye used in his new song “Lonely Roads Still Go to Sunshine,” showed Puff Daddy still cheering him on from behind bars. This “brotherhood” seems echoed in the DYDDY incident. The choice of the coin’s name and the timing of Kanye’s retweet raise suspicions about whether this was a deliberate marketing stunt.
Yet, this relationship makes Kanye’s motives even murkier. Was the DYDDY tweet just a prank? A subtle show of support for Puff Daddy? Or simply Kanye’s trademark chaos-making? Kanye’s recent moves in crypto—including rumors of launching his own token—have left many questioning his intentions. Some on X speculate he may have ties to the DYDDY team, though no evidence supports this. Regardless of the truth, Kanye’s actions once again prove his influence: one tweet can send a token’s value soaring—or leave investors bankrupt. That “brotherhood” might be genuine or pure publicity, but for Addresses A and B, the cost was devastatingly high.
The Celebrity Coin Effect Is Fading: From DYDDY to Yua Mikami’s $Mikami
The Kanye-DYDDY incident isn’t isolated—it’s a symptom of the fading power of celebrity-backed meme coins. Just days earlier, $Mikami, a coin linked to Japanese adult film star Yua Mikami, launched to brief hype but immediately crashed, losing over 60% of its peak market cap. Like DYDDY, $Mikami lacked substance, relying solely on Yua Mikami’s fame and fan economy. Investors rushed in under FOMO, only to get trapped. X was flooded with complaints calling it “yet another celebrity coin scam.”
The magic of celebrity endorsements is wearing off. In 2021, EthereumMax, promoted by Kim Kardashian and Floyd Mayweather, plummeted and led to lawsuits, exposing the risks of celebrity coins. Now, the back-to-back collapses of DYDDY and $Mikami further prove that the market no longer believes in the myth of “celebrity = instant riches.” Crypto regulation remains in a gray zone—celebrities face no legal liability akin to stock promoters—leaving speculators even more vulnerable. The $698,700 lost by Addresses A and B, along with the tragic stories behind $Mikami, serve as stark reminders: celebrity hype might ignite interest, but it often burns retail investors’ wallets. As one X user put it perfectly: “Celebrity-shilled coins are like their albums: enjoy the listen, don’t take it seriously.”
Conclusion: The Meme Coin Circus Never Stops
The DYDDY saga is a microcosm of the absurd crypto ecosystem: one celebrity tweet, one hollow token, and a trail of wreckage. Kanye West, with his signature flair for chaos, launched a rollercoaster ride from $160 million to $37 million in market cap, costing Addresses A and B a painful $698,700 lesson. This isn’t just personal tragedy—it’s a wake-up call about the dangers of meme coin speculation. DYDDY has nothing to do with technological innovation or financial freedom; it’s a cocktail of hype, impulse, and raw human greed.
The crypto circus won’t stop. There will always be new meme coins, new celebrity endorsements, and new FOMO traps. What investors can do is learn from DYDDY and $Mikami: don’t let celebrity光环 cloud your judgment, don’t let FOMO override your reason. Next time Kanye drops a crypto hint, maybe close your wallet, open his classic album *Yeezus*, and quietly appreciate real genius—at least music won’t make you lose money.
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