Ye’s YZY Token: A Cryptic Adventure or a Fashion Faux Pas?

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Kanye West, now known as Ye, has decided to launch YZY, a cryptocurrency that aims to power his business empire and bypass traditional platforms like Shopify. Ye sees YZY as a way to regain financial control after major brands such as Adidas and Balenciaga dropped him in 2022.

The token, named after Ye’s Yeezy clothing line, comes with a heavily centralized ownership structure. Ye will reserve 70% of YZY for himself, set aside 10% for liquidity, and allocate 20% for investors. The plan is to make YZY the official currency of Yeezy, allowing fans to use it for purchases on his website.

Hussein Lalani, reportedly Yeezy’s Chief Financial Officer, stated that they initially set YZY for release on February 20, but a last-minute delay pushed the launch to today.

Ye’s Crypto Venture: Following Trump’s Playbook?

Ye’s crypto venture follows in the footsteps of the crypto-friendly US President Donald Trump, who launched his own TRUMP meme coin. Trump’s token distribution faces major backlash as CIC Digital, a company linked to the president, holds 80% of the token supply.

Sources close to YZY’s team say the 47-year-old hip-hop artist initially wanted a similar 80% ownership stake but later agreed to 70%. Interestingly, if YZY records even one-tenth of TRUMP’s success, Ye’s holdings could be worth millions.

The token launch follows Ye’s skepticism of meme coins. Earlier this month, he denied involvement in any cryptocurrency, claiming he rejected a $2 million offer to launch a token. He also alleged that someone approached him to fake a meme coin launch by pretending his social media accounts had been hacked — an offer he turned down. Despite this, YZY is now a reality, and its success or failure will depend on market reception.

Ye’s crypto venture enters a crowded space where celebrity-backed tokens often see short-lived hype. Recently, celebrities like Iggy Azalea, Rich The Kid, Davido, Caitlyn Jenner, and Trippie Redd have launched tokens, most of which have suffered dramatic price crashes after an initial wave of enthusiasm.

One of the biggest concerns about YZY is its highly centralized ownership. While the tokenomics claims that Ye’s 70% stake will be subject to a vesting schedule, many in the crypto community argue that such a founder-heavy allocation creates an unfair advantage for insiders over retail investors. If Ye chooses to cash out at any point, YZY’s value could plunge overnight.

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2025-02-21 16:49