Kanye West, the U.S. hip-hop artist also known as Ye, reportedly launched a memecoin named YZY on the Solana blockchain, marking a reversal from his earlier public stance against exploiting fans through such projects [1]. The token initially surged by over 1400% in minutes, reaching a market capitalization of $3 billion. However, it soon crashed by 70%, with its market cap plummeting to $1 billion at press time [1].
According to the YZY project’s website, the token is intended to power a financial ecosystem called “Yeezy Money,” which includes services like Ye Pay and the YZY card [1]. The token’s launch was announced via a post on X (formerly Twitter), which included the contract address for the token [1]. Despite the project’s claims, concerns quickly emerged about its tokenomics, with over 80% of the supply allocated to the creators, leaving only 20% for public purchase [1]. This imbalance prompted warnings from community members, who expressed skepticism about the token’s legitimacy and fairness [1].
Analytics platform Lookonchain noted that insiders had already accumulated large amounts of YZY and began selling off early, contributing to the token’s sharp decline [1]. The token’s design also raised eyebrows due to its centralized liquidity controls, allowing the team to alter or remove liquidity, a feature reminiscent of other controversial memecoins like LIBRA [1]. Further, the project used single-sided liquidity to create artificial resistance levels between $3 and $4, which may have accelerated the price retracement [1].
The broader cryptocurrency market also responded to the YZY hype. Solana (SOL), the blockchain on which YZY was deployed, saw a nearly 7% increase, rising from $176 to $187 during the token’s brief surge [1]. However, the volatile nature of memecoins remains a point of concern. In February, Kanye West had publicly stated that he would not launch a coin to “prey” on fans, making the YZY launch all the more perplexing [1]. This inconsistency led to further doubts within the community about the project’s intentions and long-term viability.
Historically, celebrity-backed memecoins have often collapsed quickly after short-lived surges. In early 2024, numerous artists launched similar tokens, many of which dropped to near-zero values within days [1]. Notably, Ethereum co-founder Vitalik Buterin has criticized the trend for being extractive and offering little to no value to users [1]. As such, the YZY token appears to follow a familiar pattern—rapid ascent followed by a dramatic fall, with early buyers profiting while retail investors absorb the losses [1].
Source: [1] Kanye West’s YZY memecoin hits $3.2 before crashing 70% – Details (https://ambcrypto.com/kanye-wests-yzy-memecoin-hits-3-2-before-crashing-70-details/)
