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Coinbase Director Reveals 94% of YZY Tokens Controlled by Insiders

YZY Money’s documentation includes terms preventing class action participation and potential legal fees, while insiders control the vast majority of tokens, including those concentrated in a single multisignature wallet.

Summary

Conor Grogan, a director at Coinbase, disclosed that at least 94% of YZY tokens are controlled by insiders, with 87% initially concentrated in a single multisignature wallet. Approximately 7% of the total tokens are allocated in liquidity pools, and about 3% were acquired through pre-arranged trades at launch. YZY Money’s terms also restrict users from participating in class action lawsuits and may impose legal fees for certain violations.

Terms & Concepts
  • Multisignature Wallet: A cryptocurrency wallet that requires multiple private keys to authorize a transaction, enhancing security and shared control.
  • Liquidity Pool: A collection of funds locked in a smart contract used to facilitate decentralized trading, lending, and market making.
  • Token Distribution: The allocation of a cryptocurrency project’s tokens among insiders, investors, and public markets, often a key factor in assessing decentralization and risk.