Ye, the artist previously known as Kanye West, has announced plans to launch a new cryptocurrency token called YZY. This development comes amid a series of controversies that have led to significant fallout in his business dealings and public image.
Introducing the YZY Token
According to multiple sources familiar with the project, the YZY token aims to provide Ye with a platform to bypass traditional e-commerce channels, such as Shopify, which have severed ties with him due to his inflammatory remarks. The YZY token, named after his popular Yeezy clothing brand, is positioned as the official currency for Yeezy and will be accepted as payment on his website.
In a remarkable allocation of resources, 70% of the YZY tokens will be personally reserved for Ye, with only 10% earmarked for liquidity provisions and the remaining 20% offered to investors. This structure raises eyebrows, especially in light of Ye’s previous comments about the crypto world.
A Controversial Background
Ye’s venture into the cryptocurrency space comes on the heels of a tumultuous few years filled with public controversies. In 2022, his antisemitic comments led to the severance of business relationships with major brands like Adidas and Balenciaga, as well as his talent agency. Notably, he has made statements praising Adolf Hitler and engaged in harmful rhetoric against various groups, further compounding his public image issues.
In 2023, his actions continued to provoke backlash, including listing a T-shirt featuring a swastika on the Yeezy website, which prompted Shopify to close his online store. These incidents have created a challenging environment for Ye and his business ventures.
The Launch Delays and Future Plans
Originally scheduled for launch on Thursday at 6:00 p.m., the sale of the YZY token has been postponed to Friday, according to a team member who requested anonymity. The token’s announcement was first communicated to CoinDesk via an unsolicited email from Hussein Lalani, who claimed to be Yeezy’s chief financial officer. Although Lalani requested an embargo on the publication, CoinDesk chose to proceed with reporting based on corroborated information from additional sources.
Learning from Other Celebrity Tokens
Rumors of the YZY token began circulating earlier this month after Ye hinted at reaching out to Coinbase CEO Brian Armstrong. While he initially claimed he was not interested in a crypto project, citing that “coins prey on the fans with hype,” sources have mentioned that Ye is inspired by Donald Trump’s TRUMP meme coin, which had a similar ownership structure. Trump retains 80% of the TRUMP token, while Ye negotiated down to a 70% stake. If YZY achieves even a fraction of TRUMP’s success, Ye’s share could translate into significant financial gain.
Navigating a Crowded Market
YZY’s entry into the crypto market faces challenges, particularly given the saturation of celebrity-driven tokens that have often been criticized for exploiting fan loyalty without providing real value. Many of these projects experience fleeting hype-driven surges, followed by sharp declines that leave everyday investors at a loss.
The centralized allocation of tokens also raises concerns about volatility and the potential for sudden price drops. The initial press release for YZY indicates that Ye’s 70% stake will follow a phased vesting schedule, with some tokens locked for up to 12 months, limiting immediate sell-off opportunities. Despite this, critics maintain that such arrangements primarily benefit founders at the expense of retail investors.
Recent events in Argentina, where a meme coin endorsed by President Javier Milei turned out to be a “pump-and-dump” scheme, have sparked public outrage and calls for accountability. Sources close to the YZY project have suggested that the token’s delay may be a strategic decision to distance it from the fallout surrounding Milei’s controversial coin.
With the launch of YZY, the world will be watching closely to see how Ye navigates this new chapter in the cryptocurrency landscape amidst ongoing controversies and market skepticism.
