An Explosive Entry by Kanye West into Crypto?
Kanye West, now known as Ye, is set to launch his own token, called YZY. According to several CoinDesk sources close to the project, this initiative aims to bypass traditional platforms like Shopify, which have cut ties with the artist due to his repeated hateful statements. This foray into the world of cryptocurrencies comes after years of scandals that have weakened his economic empire.
The YZY token, named after his brand Yeezy, adopts a controversial distribution: 70% of the tokens will be allocated directly to Ye, 20% will be reserved for investors, and only 10% will be used for liquidity. This concentration of power in the artist’s hands brings to mind other highly centralized projects, where creators ensure a dominant position from the start.
A Troubled Past and an Uncertain Future
Ye’s commercial influence collapsed after being abandoned by Adidas, Balenciaga, and his talent agency in 2022 following his anti-Semitic remarks, including live praises of Adolf Hitler. Recently, he self-proclaimed himself as a ‘Nazi’ and put a T-shirt adorned with a swastika up for sale, prompting Shopify to close his online store. Despite a sudden turnaround where he claimed not to be a Nazi anymore, this new crypto initiative is not without controversy.
Ye had publicly criticized celebrities launching their own tokens, stating that he had received several memecoin project proposals and declined them all.
According to an internal document, YZY is expected to be the official currency of Yeezy and will be accepted as a means of payment on its website. However, the credibility of the project is undermined by its chaotic announcement: after denying any interest in cryptos and criticizing their exploitation of fans, Ye now seems determined to capitalize on this trend.
A Model Inspired by Donald Trump’s TRUMP Token
Ye’s entourage claims that the artist is seeking to replicate former President Donald Trump’s strategy with his own memecoin, TRUMP, launched before his second term. Just like Trump, who controls 80% of his token through CIC Digital, Ye initially wanted to hold 80% of the YZY token, before being reduced to 70% after internal negotiations. If YZY achieves even a fraction of TRUMP’s success, Ye could pocket tens of millions of dollars.
The token launch, initially scheduled for Thursday, has been postponed to this Friday. A team member indicated that this delay was due to concerns related to the recent scandal involving Argentine President Javier Milei. Indeed, a memecoin backed by Milei, LIBRA, turned out to be a pump-and-dump, causing hundreds of millions of dollars in losses and sparking a national outcry and calls for his impeachment. Faced with this event, the YZY team is hesitant to move forward immediately, fearing that public opinion will associate the project with a new fraud.
YZY: Innovation or Disguised Scam?
The crypto market is replete with projects initiated by celebrities, often launched for the sake of buzz before seeing their value plummet, leaving ordinary investors abandoned. With such a concentration of tokens in Ye’s hands, the risk of price manipulation is real, and the project’s vesting structure, which limits the sale of a portion of the tokens over 12 months, does not guarantee the absence of dumping.
As Ye attempts to rebuild his financial empire, YZY emerges as an attempt to divert his audience towards a new source of income. It remains to be seen whether this token will revolutionize the fashion and music industry or end up on the long list of ephemeral shitcoins that only serve to enrich their creators.
