Zinger Key Points
- The launch of YZY was delayed, reportedly due to concerns following the collapse of Argentina’s Milei-backed LIBRA token.
- Critics warn celebrity tokens often spike on hype before collapsing, exposing retail investors to significant financial risks.
- Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos.
Ye, formerly known as Kanye West, may be set to launch a cryptocurrency called YZY, marking his latest move in a long string of business ventures.
What Happened: Quoting sources familiar with the project, Coindesk reported that the token is intended to serve as the official currency of his Yeezy brand while allowing him to sidestep traditional financial platforms that have distanced themselves from him due to his public controversies.
The YZY token's structure has already raised concerns.
Seventy percent of its total supply will be allocated to Ye himself, with only a small portion set aside for investors and liquidity.
This centralized ownership model closely resembles that of U.S. President Donald Trump's TRUMP/USD token, which saw 80% of its supply held by a company tied to him.
Initially scheduled for release on Ye's website, YZY's launch was delayed at the last minute.
Insiders suggest the decision came as the team reconsidered its timing in light of a recent scandal involving Argentina's president, Javier Milei, and the LIBRA token.
The Milei-endorsed coin collapsed soon after launch, triggering public outrage and raising questions about the risks of politically and celebrity-backed digital assets.
Also Read: SEC Scales Back Crypto Enforcement, Expands Focus To Cyber Fraud
Why It Matters: Similar concerns surround YZY.
Crypto analysts warn that tokens heavily concentrated in the hands of a single individual often lead to volatile price movements, where early hype drives prices up before they collapse, leaving retail investors at a loss.
While the team behind YZY claims there will be a vesting period preventing immediate sales of Ye's tokens, critics argue that such structures still favor insiders over everyday investors.
Ye's cryptocurrency venture follows years of financial and public controversies.
In 2022, he lost major deals with Adidas and Balenciaga after making antisemitic statements.
More recently, Shopify removed his online store after he listed products featuring offensive symbols, further limiting his ability to conduct business through mainstream platforms. Earlier this month, Ye went on a tear on X, praising Adolf Hitler and calling himself “a nazi.”
Despite his past statements dismissing cryptocurrency, Ye appears to have changed course, recognizing the potential for blockchain to offer a censorship-resistant revenue stream.
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