Ye to Launch YZY Crypto Token Amid Controversy
In Hong Kong, Ye, previously known as Kanye West and who has made several controversial statements recently, is reportedly set to introduce a new cryptocurrency token. This information comes from three insiders familiar with the project. The token, named YZY, aims to provide Ye with an alternative financial avenue after several platforms, including Shopify, severed ties with him due to his inflammatory remarks. The YZY token is structured such that 70% will be allocated directly to Ye, while 10% is earmarked for liquidity provisions and 20% for investors.
Background on Ye’s Recent Controversies
Ye’s entry into the cryptocurrency space follows a tumultuous period marked by significant backlash against his actions and statements. In 2022, major companies like Adidas and Balenciaga cut their business relationships with him after he made a series of antisemitic remarks, including praising Hitler during a live interview. The backlash continued this year when he once again referred to himself as a Nazi on social media and faced further consequences, such as Shopify shutting down his online store after he posted a T-shirt featuring a swastika. Despite these controversies, Ye has recently claimed he is no longer a Nazi, expressing gratitude to Adam Sandler for his support.
Details of the YZY Token
The YZY token is being positioned as the official currency for Ye’s Yeezy brand and will be accepted as a payment method on his website. CoinDesk learned about the token from Hussein Lalani, who claimed to be the chief financial officer for Yeezy and sent documents describing the token’s details. Although he requested an embargo on the information, CoinDesk declined, and multiple sources confirmed the authenticity of the documents. Initially, the YZY token was scheduled to launch on Thursday at 6:00 p.m., but its release has since been postponed to Friday, as per a team member who wished to remain anonymous.
Inspiration from Trump’s TRUMP Token
Speculation about Ye’s cryptocurrency began earlier this month when he hinted at reaching out to Coinbase’s CEO. Although he initially stated he was not interested in launching a coin, citing concerns about exploitation of fans, sources have indicated that Ye is looking to mirror the success of Donald Trump’s TRUMP meme coin, which was unveiled shortly before his second inauguration. Similar to Trump’s token, which has a significant portion of its supply held by a single entity, Ye originally sought to secure 80% ownership of the YZY token but ultimately settled for 70%. If YZY manages to replicate even a portion of TRUMP’s success, Ye’s stake could potentially yield substantial profits.
The Risks of Celebrity Tokens
YZY enters a crowded market filled with celebrity-backed cryptocurrencies, many of which have faced criticism for capitalizing on fan loyalty without delivering real value. These tokens often experience a brief surge in price driven by hype before plummeting, leaving retail investors at a loss. The centralized distribution of ownership poses further risks of abrupt price declines. According to the press release regarding YZY, Ye’s substantial stake is organized through a phased vesting schedule, with some tokens locked for as long as 12 months, preventing immediate sales. Critics, however, argue that such arrangements still favor founders over everyday investors. Recently, Argentina found itself in political turmoil when a meme coin endorsed by President Javier Milei was exposed as a “pump-and-dump” scheme, inciting public outrage and calls for impeachment. A source close to YZY indicated that the token’s launch delay is partly due to concerns about being perceived as too similar to the Milei situation.
