Kanye's tweet ignites DYDDY frenzy: 160 million market capitalization evaporates overnight, retail investors Rekt 700,000.

Two investors invested a large amount of funds due to FOMO sentiment, but the DYDDY price quickly experienced a big dump, resulting in a total loss of $698,700.

Written by: Luke, Mars Finance

What happened?

In the early morning of May 9, 2025, a dramatic event unfolded at the intersection of the global entertainment and cryptocurrency circles. 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 the on-chain monitoring service OnChain Lens, two investors – let's call them address A and address B – acted quickly under the influence of 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 experienced a big dump, resulting in a loss of $316,700 for address A and an even greater loss of $382,000 for address B, with a total loss reaching $698,700.

The backdrop to this turmoil is staggering. DYDDY was born only 7 hours before Kanye's retweet, and its market capitalization soared to a peak of $160 million, attracting a lot of attention. However, the bubble burst quickly, and as of now, DYDDY's market capitalization has shrunk to $37 million, a loss of nearly eighty percent. The on-chain data also revealed a hint of weirdness: a top trader made a $1 million windfall profit by pinpointing the purchase before Kanye's retweet, sparking speculation of insider trading. Kanye's tweet not only set off a speculative frenzy, but also exposed the fragility of the meme coin market: celebrity effects, FOMO sentiment, and tokens lacking fundamentals constituted a carnival that was doomed to collapse. This farce is not only a financial Waterloo for the two investors, but also another satire on the speculative culture of the crypto circle.

What is DYDDY: A Controversial Meme Narrative

The birth of DYDDY can be described as a "legendary fast track" 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 mockery of Diddy, or some sort of "homage" to 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 controversial figures as its selling point, attempting to create hype by leveraging the fame of the notorious influencer and Kanye's endorsement. Kanye's tweet instantly ignited this narrative, pushing DYDDY's market cap to $160 million. However, the lack of fundamental support quickly exposed its weaknesses. On-chain data shows that a large number of early holders sold at the peak, leaving only the aftermath of a big dump for FOMO buyers. There were even users on platform X mocking: "The only use case for DYDDY is to remind you not to trust coins pushed by celebrities." From $160 million to $37 million in market cap decline, DYDDY proved the fate of meme coins: after the hype, it ultimately amounts to nothing.

Kanye and Big Sean: Complicated "Brotherhood"

The storm behind DYDDY cannot be separated from the intricate relationship between Kanye and Ye. As two legendary figures in the music industry, their friendship has long surpassed ordinary friendship. Kanye has repeatedly publicly supported Ye, even when the latter was embroiled in legal scandals. In 2024, after Ye was arrested on charges of extortion and sex trafficking, Kanye not only did not distance himself from him but referred to him as his "twin" and even wore a T-shirt designed by Ye during a controversial interview. A leaked phone call from prison was used by Kanye in his new song "Lonely Roads Still Go to Sunshine," showing that Ye was still cheering him on from behind bars. This kind of "brotherhood" seems to also have traces in the DYDDY incident. The choice of coin name and the timing of Kanye's retweets raise suspicions as to whether this is a deliberately orchestrated marketing gimmick.

However, this relationship also complicates Kanye's motives. Is DYDDY's tweet a simple prank? Is it a subtle support for Big Daddy? Or is it Kanye's consistent style of "creating chaos"? Kanye's actions in the crypto space in recent years—including rumors of launching his own token—have left people questioning his intentions. On platform X, some speculate that Kanye might have some connection with the DYDDY team, but there is a lack of evidence to support this. Regardless of the truth, Kanye's actions once again demonstrate his influence: a single tweet can cause market value to surge or leave investors with significant losses. This "brotherhood" may be genuine or it may be hype, but for addresses A and B, the cost is undoubtedly too painful.

Celebrity Coin Effect Has Dried Up: From DYDDY to Yua Mikami's $Mikami Coin

The DYDDY incident involving Kanye is not an isolated case, but rather a reflection of the diminishing effectiveness of celebrity-endorsed meme coins. Just a few days ago, the $Mikami coin associated with Japanese adult film star Yua Mikami was launched, which also sparked a brief hype, but immediately experienced a big dump, with its market value evaporating over 60% from its peak. Similar to DYDDY, the $Mikami coin also lacks substantial content and relies purely on Yua Mikami's fame and fan economy for support. Investors rushed in driven by FOMO, but were quickly trapped, with complaints about "another celebrity coin scam" flooding the X platform.

The magic of celebrity endorsements is fading. In 2021, EthereumMax, promoted by Kim Kardashian and Floyd Mayweather, sparked a lawsuit after it crashed, exposing the risks of celebrity coins. Now, the back-to-back crashes of DYDDY and $Mikami are further proof that the market's superstition of "celebrity = get rich" no longer works. The regulation of the crypto market is still a gray area, and celebrities do not have to bear the same legal responsibilities as the stock market, which makes speculators more vulnerable. The $698,700 loss of addresses A and B, as well as the history of $Mikami investors' blood and tears, are a reminder that the celebrity effect may ignite the heat, but it is often the wallets of retail investors that are burned. One user on X summed it up brilliantly: "Celebrities push coins, just like their albums: just listen to it, don't take it seriously."

Conclusion: The circus of meme coins never stops

The DYDDY incident is a microcosm of the absurd ecosystem in the crypto space: a celebrity tweet, a hollow token, leaving a mess behind. Kanye West, with his unique talent for chaos, triggered a roller coaster ride in market value from 160 million dollars to 37 million dollars, costing addresses A and B an expensive tuition of 698,700 dollars. This is not just a personal tragedy, but also a wake-up call for the meme coin speculation culture. DYDDY is not about technological innovation or financial freedom; it is a mix of hype, impulse, and human greed.

The crypto circus won’t stop, there will always be new meme coins, new celebrity endorsements, and new fear of missing out (FOMO) traps. What investors can do is perhaps wake up from the lessons of DYDDY and $Mikami coins: don’t let the halo of celebrities blind your judgment, don’t let FOMO cloud your mind. Next time Kanye throws out crypto hints, why not close your wallet, open his classic album "Yeezus", and quietly feel the true genius – at least, music won’t make you lose money.