Kanye's tweet ignites DYDDY frenzy: 160 million market value evaporated overnight, retail investors lost 700,000

Author: Luke, Mars Finance

What happened?

In the early hours of May 9, 2025, a dramatic event erupted at the intersection of the global entertainment industry and the cryptocurrency world. Rap superstar and fashion icon Kanye West (now known as Ye) retweeted a post on the X platform that included the meme coin DYDDY contract address.

This seemingly casual retweet was like dropping a nuclear bomb in the crypto market, instantly igniting the enthusiasm of speculators. According to data from on-chain monitoring service OnChain Lens, two investors—let's call them Address A and Address B—quickly jumped in, driven by FOMO (fear of missing out). Address A spent $632,200 to purchase 8.67 million DYDDY, while Address B invested $544,800 to acquire 4.46 million. However, just a few hours later, the price of DYDDY plummeted, resulting in a loss of $316,700 for Address A and a staggering loss of $382,000 for Address B, totaling a loss of $698,700.

The background of this incident is astonishing. DYDDY was created only 7 hours before Kanye's retweet, and its market cap once soared to a peak of $160 million, attracting countless eyes. However, the bubble burst quickly, and as of now, DYDDY's market cap has shrunk to $37 million, a nearly 80% decrease. On-chain data also revealed something eerie: a top trader made a precise buy before Kanye's retweet, earning a profit of $1 million, raising suspicions of insider trading. Kanye's tweet not only triggered a speculative frenzy but also exposed the fragility of the meme coin market: celebrity effects, FOMO emotions, and tokens lacking fundamentals created a carnival destined to collapse. This farce was not only a financial Waterloo for the two investors but also another satire on the speculative culture of the crypto world.

What is DYDDY: A Controversial Meme Narrative

The birth of DYDDY can be described as a "fast-track legend" in the meme coin space. As a typical meme coin, it has no white paper, no clear use case, and not even a decent official website. Its entire narrative seems to revolve around one name: Diddy, referring to Sean "Diddy" Combs, the music mogul embroiled in extortion and sex trafficking allegations. The naming of DYDDY appears to be a jab at Diddy or some sort of "homage" from the crypto world, but this bold choice is more akin to naming a ship "Titanic II"—both provocative and dangerous.

In the world of meme coins, narrative is everything. From Dogecoin's "funny dog head" to Shiba Inu's "dog successor," successful meme coins often attract fans through humor or community culture. DYDDY, however, chose a controversial figure as its selling point, attempting to leverage Diddy's fame and Kanye's endorsement to generate buzz. Kanye's tweet instantly ignited this narrative, pushing DYDDY's market cap to $160 million. However, the lack of fundamental support quickly exposed its vulnerabilities. On-chain data shows that many early holders sold off at the peak, leaving only the wreckage of a crash for FOMO-driven buyers. Users on the X platform even joked: "The only use case for DYDDY is to remind you not to trust coins pushed by celebrities." The market cap plummeting from $160 million to $37 million proved DYDDY's fate: after the hype, it ultimately amounts to nothing.

Kanye and Diddy: A Complex "Brotherhood"

Behind the DYDDY incident lies the enigmatic relationship between Kanye and Diddy. As two legendary figures in the music industry, their friendship has long transcended ordinary bounds. Kanye has publicly supported Diddy multiple times, even as the latter faced legal scandals. In 2024, after Diddy was arrested on extortion and sex trafficking charges, Kanye not only did not distance himself but referred to him as his "twin" and even wore a T-shirt designed by Diddy during a controversial interview. A leaked phone call from prison, used by Kanye in his new song "Lonely Roads Still Go to Sunshine," showed Diddy still cheering him on from behind bars. This "brotherhood" seems to have traces in the DYDDY event. The choice of the coin's name and the timing of Kanye's retweet raise suspicions about whether this was a deliberate marketing stunt.

However, this relationship complicates Kanye's motives. Was the DYDDY tweet merely a prank? An implicit support for Diddy? Or is it part of Kanye's consistent "chaos creation" style? Kanye's recent actions in the crypto space—including rumors of launching his own token—have left people questioning his intentions. Some on the X platform speculate that Kanye may have some connection with the DYDDY team, but there is no evidence to support this. Regardless of the truth, Kanye's actions once again demonstrate his influence: a single tweet can cause a market cap to skyrocket or leave investors with nothing. This "brotherhood" may be genuine or merely hype, but for Addresses A and B, the cost is painfully high.

The Celebrity Coin Effect is Exhausted: From DYDDY to Yua Mikami's $Mikami Coin

The DYDDY incident is not an isolated case but a reflection of the diminishing effectiveness of celebrity-endorsed meme coins. Just days ago, Japanese adult film star Yua Mikami's associated $Mikami coin launched, also sparking a brief hype, but it plummeted immediately after listing, with its market cap evaporating by over 60% from its peak. Like DYDDY, the $Mikami coin also lacks substantive content, relying purely on Yua Mikami's fame and fan economy for support. Driven by FOMO, investors rushed in but quickly found themselves trapped, with the X platform flooded with complaints about "another celebrity coin scam."

The magic of celebrity endorsements is fading. In 2021, EthereumMax, promoted by Kim Kardashian and Floyd Mayweather, plummeted and led to lawsuits, exposing the risks of celebrity coins. Now, the consecutive collapses of DYDDY and $Mikami coins further prove that the market's superstition of "celebrity = wealth" is no longer effective. The regulatory environment in the crypto market remains a gray area, and celebrities promoting coins do not bear the same legal responsibilities as in stock markets, making speculators even more vulnerable. The $698,700 loss for Addresses A and B, along with the painful history of $Mikami coin investors, serves as a reminder: while celebrity effects may ignite excitement, it is often retail investors' wallets that get burned. One user on X summed it up succinctly: "Coins pushed by celebrities are like their albums: listen to them, but don't take them seriously."

Conclusion: The Circus of Meme Coins Never Stops

The DYDDY incident is a microcosm of the absurd ecosystem in the crypto world: a celebrity tweet, an empty token, leaving a mess behind. Kanye West, with his unique talent for chaos, triggered a rollercoaster ride of market cap from $160 million to $37 million, costing Addresses A and B a hefty tuition of $698,700. This is not just a personal tragedy but a wake-up call regarding the speculative culture of meme coins. DYDDY has nothing to do with technological innovation or financial freedom; it is a mixture of hype, impulse, and human greed.

The crypto circus will not stop; there will always be new meme coins, new celebrity endorsements, and new FOMO traps. What investors can do is perhaps only to awaken from the lessons of DYDDY and $Mikami coins: do not let the halo of celebrities cloud your judgment, and do not let FOMO cloud your mind. The next time Kanye throws out a crypto hint, it might be wise to close your wallet and open his classic album "Yeezus," quietly appreciating true genius—at least, music won't make you lose money.