Ye, formerly known as Kanye West, is set to venture into the cryptocurrency market with the YZY token. This move comes as the artist seeks alternatives following the cessation of partnerships due to his recent inflammatory remarks.
Ye's introduction of the YZY token is designed as a strategic workaround to platforms like Shopify, which have distanced themselves from him because of his provocative statements. Cryptocurrency's inherently decentralized nature offers Ye a platform to leverage his fame.
Of the YZY tokens, 70% will be directly allocated to Ye, with only 10% dedicated to liquidity and 20% available for investors. This initiative follows a series of controversies that have impacted Ye's business pursuits.
In 2022, the artist faced significant backlash, including being dropped by major partners such as Adidas and Balenciaga, due to his antisemitic comments, which included instances of praising Adolf Hitler. The situation escalated when a T-shirt featuring a swastika appeared on the Yeezy website, resulting in Shopify closing his e-commerce site.
YZY has been promoted as the official currency of the Yeezy brand, intended for use as payment on its website. CoinDesk received information about the token from Hussein Lalani, who identified himself as Yeezy's CFO, via an unsolicited email. Subsequent requests for comment from Lalani went unanswered. Although the YZY token was slated for release on Yeezy’s website at 6:00 p.m. on Thursday, its debut was postponed to Friday, as reported by a source who wished to remain anonymous.
There have been ongoing rumors about Ye's potential crypto venture, especially after he mentioned contacting Coinbase CEO Brian Armstrong without disclosing a plan for a coin. He did note, however, that coins often exploit fan bases. Insiders revealed that Ye aspired to mirror Donald Trump's TRUMP meme coin strategy, which gained attention for its extensive insider ownership. While Ye desired an 80% stake similarly, he settled for 70%.
YZY enters an already crowded market of celebrity-backed crypto projects often criticized for capitalizing on fan enthusiasm without delivering concrete value. Such projects frequently experience brief surges in value before crashing, impacting retail investors. Large allocations to insiders further expose these tokens to sudden value declines. According to the YZY press release, Ye's 70% ownership will be managed through a phased vesting schedule, with some tokens locked for up to 12 months. Critics, however, argue that this structure still favors creators over everyday investors.
Recently, Argentina faced political turmoil as President Javier Milei's endorsed meme coin, LIBRA, was revealed to be a fraudulent "pump-and-dump" scheme. A source associated with the YZY project noted that the token's launch delay comes as the team assesses potential associations with the LIBRA incident.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.