Kanye West Criticized Memecoins, Then Reportedly Launched His Own
▼ Summary
– Kanye West (Ye) has launched a cryptocurrency called YZY, despite previously rejecting the idea in February by stating that coins prey on fans with hype.
– The YZY coin’s value surged to $3 billion shortly after launch but then plummeted by two-thirds within three hours, with traders collectively losing over $20 million.
– West’s recent erratic behavior includes antisemitic remarks in 2022, which led to widespread condemnation and the end of his partnership with Adidas.
– YZY is part of a broader YZY Money concept, with 70% of the coin supply held by Yeezy Investments LLC and locked for at least three months to prevent price manipulation.
– Trading patterns and the concentration of supply have raised questions about the integrity of the launch, with analysts warning of potential future sell-offs.
Hip-hop artist and fashion mogul Kanye West, known professionally as Ye, has reportedly launched his own cryptocurrency token called YZY, igniting a frenzy of speculative trading. This move comes just months after he publicly dismissed the idea of creating a memecoin, insisting such ventures prey on fan loyalty through hype.
In a surprising reversal, West’s official X account posted two messages on Wednesday evening announcing the release of the YZY token. One included a brief, oddly flat video declaring, “The official Yeezy token just dropped,” leading some observers to question whether the clip was generated by artificial intelligence. The announcement triggered an immediate surge in trading volume, with the token’s market capitalization briefly soaring to $3 billion before collapsing by nearly two-thirds within hours as early buyers took profits.
Data from blockchain analytics firm Nansen indicates that more than $740 million in trades have been executed since the token launched, though the vast majority of participants have suffered losses. So far, collective investor losses exceed $20 million.
West, a multi-Grammy Award winner, has drawn significant criticism in recent years for increasingly unpredictable and controversial behavior. Most notably, a series of antisemitic comments in 2022 resulted in severe backlash and cost him a highly profitable partnership with Adidas. Earlier this year, he released a music video titled “Heil Hitler,” further intensifying public scrutiny.
The YZY token is promoted as a component of a broader ecosystem named YZY Money, which purportedly includes a cryptocurrency payment system and a branded debit card. According to its website, the initiative aims to grant users greater financial autonomy, operating “free from centralized authority.”
Token distribution details reveal that 20% of the total YZY supply has been released to the public, with another 10% allocated to exchanges to facilitate liquidity. The remaining 70% is held by Yeezy Investments LLC, which is contractually barred from accessing or selling those tokens for at least three months, a standard measure intended to prevent sudden sell-offs by major holders.
Yeezy Investments LLC is registered in Delaware, a jurisdiction that does not mandate public disclosure of company ownership. The firm operates the YZY Money website under a license from Ox Paha Inc., an entity West uses to manage his intellectual property assets.
Cryptocurrency analysts often caution inexperienced investors against tokens with highly concentrated ownership, warning that large, coordinated sales by insiders can drastically devalue the asset. Nicolai Søndergaard, a research analyst at Nansen, emphasized the risks, noting, “You have to consider what happens when locked tokens eventually unlock. If all tokens become available in two years, you might not want to hold the token by then, since a major sell-off is a reasonable expectation.”
Questions about the legitimacy of the YZY launch have also emerged, with unusual trading patterns in the minutes following the announcement raising further doubts about the token’s integrity.
(Source: Wired)
