Summary
- YZY quickly reached a valuation in the billions shortly after launching but then fell significantly.
- The token is positioned as an integral component of the “YZY Money” payment platform.
- On-chain analysis reveals that 70% of the supply is controlled by a single wallet, raising concerns about centralization.
Kanye West has ventured into cryptocurrency with YZY, a token based on Solana, which he announced late Wednesday on his verified X account.
“A new economy, built on chain,” West’s account tweeted. A video unveiling “the official Yeezy token” followed shortly after.
This marks West’s first direct involvement with a cryptocurrency, having previously discussed Bitcoin and even litigated against the unauthorized “Coinye” token. YZY is officially the first coin launched under his name. Earlier in March, West hinted at his entry into the cryptocurrency space.
YZY’s Volatility
The announcement sparked a quick surge, pushing the coin’s market cap over $3 billion within an hour, only to drop below $1 billion soon after, based on on-chain data from Birdeye.
The token swiftly appeared on platforms like CoinMarketCap and Bitget, with Poloniex also announcing its support shortly afterward.
Trading volumes on Solana’s decentralized exchanges surged, positioning YZY among the most prominent celebrity-affiliated tokens to launch, surpassing others like TRUMP, MOTHER, and LIBRA.
Despite a 375% increase over the last 24 hours, the token has seen a more than 34% decline within the hour, currently priced at $0.99, according to data.
Marketed as part of a wider “YZY Money” ecosystem, its website portrays the token as a feature of “a new financial system, based on crypto technology,” with YZY identified as the basic cryptocurrency within a broader ecosystem.
The launch purportedly includes an anti-sniping mechanism, utilizing 25 contract addresses, with one selected as the official, intended to “empower genuine traders,” the website FAQ states.
According to the website, YZY is portrayed as more than simply a meme coin, introducing initiatives like Ye Pay, a proposed payment system aimed at lowering merchant fees, and the YZY Card, promoted as a universal spending tool for YZY and USDC.
The project states that the token will facilitate loyalty programs, retail interactions, and peer-to-peer transactions, but no specific timeline or technical information has been provided.
Although the site has revealed the Solana contract address and liquidity pool, concerns persist regarding governance, regulatory compliance, and the likelihood of delivering these features.
West’s team under the Yeezy brand has yet to respond to Decrypt’s inquiries regarding these matters.
Bubblemaps data indicates that a single wallet manages around 70% of the token’s total billion-supply, with public allocations at only 20%, and the rest vested under Yeezy Investments LLC, raising concerns over potential centralization risks.
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