Kanye West, the most controversial rapper and fashion mogul now known as Ye, is stepping into the world of cryptocurrency with his token, YZY. Named after his famous Yeezy brand, the token will act as the official currency for Yeezy products and can be used to buy items on his website.
This move comes as Ye looks for new ways to run his business after being cut off by major platforms like Shopify.
Ye’s Bold Move into Crypto
Ye’s entry into the crypto space comes after years of business struggles. In a recent time, he lost partnerships with Adidas, Balenciaga, and other major brands in 2022 after making intolerant comments. More recently, he listed a T-shirt with a swastika on his Yeezy website, leading Shopify to shut down his online store.
With traditional platforms cutting ties, Ye is now turning to crypto as a way to regain control over his brand without depending on big companies.
His plan involves launching the YZY token, with 70% of it going to Ye himself, while 10% is allocated for liquidity and 20% for investors. This has raised concerns, as it means Ye holds most of the tokens, leaving little room for investors.
Interestingly, Ye’s crypto plans started earlier this month when he hinted at contacting Coinbase CEO Brian Armstrong. However, Ye later claimed he wasn’t launching a token, saying such projects often “prey on fans with hype.”
Launch Delayed Amid Concerns
Meanwhile, the YZY token was supposed to launch on 20 Feb but was pushed to 21 Feb. Some team members say the delay is because of concerns about a recent crypto controversy in Argentina, where a government-backed token turned out to be a scam.
Thus critics fear YZY could face similar issues, especially with its heavy insider ownership.
Similarity With Trump’s Token
Ye’s decision to create YZY is being compared to U.S. President Donald Trump’s TRUMP token. Trump launched his coin just before his second inauguration, keeping 80% of it under the control of a company linked to him.
Similarly, Ye initially wanted to hold 80% of YZY but was convinced to lower it to 70%.
Many celebrity-backed tokens have failed in the past, often seeing quick price spikes before crashing. Critics argue that Ye’s high ownership percentage could lead to a similar outcome, where early investors profit, but regular buyers lose money.
