In the cryptocurrency market, celebrity-created tokens are emerging like bamboo shoots after spring rain. Recently, one token has generated intense discussion—YZY, founded by controversial American rapper Kanye West. This token represents his attempt to escape his recent predicament of being boycotted by major brands. YZY is not merely a combination of celebrity influence and blockchain technology, but also demonstrates to the market how cryptocurrencies can provide new paths for public figures facing business difficulties.
So, what exactly is YZY? How does it differ from other celebrity tokens? What opportunities and risks does it present for investors? This article will analyze YZY from multiple perspectives, helping you comprehensively understand this highly-watched crypto asset, exploring its underlying business logic, technical features, and future development potential.
What is YZY?
YZY is a cryptocurrency token created by American rapper Ye (formerly known as Kanye West), designed to be the official digital currency of his Yeezy brand. The primary purpose of this token is for purchasing merchandise on the Yeezy website, helping Ye bypass mainstream e-commerce platforms like Shopify that have cut ties with him due to his controversial statements. YZY utilizes the censorship-resistant characteristics of blockchain technology to provide an independent payment ecosystem for the Yeezy brand. According to insiders, the YZY token distribution is highly centralized: 70% is owned by Ye personally, 10% circulates in the market, and 20% is allocated to investors. The YZY held by Ye will be gradually released through a multi-stage unlocking mechanism, with some tokens locked for up to 12 months.
Who is Kanye West? What is the relationship between YZY token and Yeezy?
Kanye West is a renowned American rapper, record producer, and fashion designer born on June 8, 1977, and is one of the most influential figures in hip-hop music. Ye’s music career began as a producer for artists, followed by producing albums for Roc-A-Fella Records, before releasing his debut album “The College Dropout” to enormous success.
His Yeezy brand has collaborated with numerous well-known companies such as Adidas and Gap, establishing a vast business empire. As one of the world’s best-selling music artists, Ye has sold over 160 million records, won 24 Grammy Awards, and has repeatedly appeared on Time magazine’s list of the most influential people in the world.
However, in recent years, Ye has drawn attention for a series of controversial statements. In 2022, he made anti-Semitic comments and publicly praised Hitler, causing Adidas, Balenciaga, and several other companies to terminate their partnerships with him. In 2024, he referred to himself as a “Nazi” on the social platform X and listed T-shirts bearing Nazi symbols on the Yeezy website, ultimately resulting in Shopify shutting down his online store.
These controversial incidents have severely impacted Ye’s career and are important background factors in his turn toward issuing YZY, as he attempts to rebuild his business empire through the censorship-resistant nature of cryptocurrency.
The Development Process of YZY
The development journey of YZY token has actually been quite dramatic, completely different from most cryptocurrency projects. Before its official launch, Ye’s attitude toward issuing his own token fluctuated considerably, making the development process full of suspense.
Initial plans for YZY could be traced back to early February 2024, when Ye hinted at attempting to contact Coinbase CEO Brian Armstrong, sparking market speculation that he might be planning to enter the cryptocurrency market. However, he subsequently clarified in a post: “I will not issue a coin,” claiming that someone had offered him $2 million to issue a personal token, which he refused, and directly stated: “These coins just rely on hype to exploit fans.”
These statements caused market expectations for “Ye issuing a coin” to cool dramatically. On Polymarket, the odds for “Kanye issuing a coin in February” plummeted from 40% to 13%. Surprisingly, just a few weeks later, multiple insiders revealed to CoinDesk that Ye was secretly preparing to launch YZY token.
According to CoinDesk’s report, they initially received an email signed by Hussein Lalani, who claimed to be the CFO of Yeezy, and later voluntarily provided documents related to the YZY token. Insiders revealed that YZY was originally scheduled to begin sales on a Thursday evening at 6 PM on the Yeezy website, but was temporarily postponed to Friday because the team was concerned that the “Argentine President’s coin” incident would make the market more cautious about “celebrity coins.”
Insiders also revealed that Ye had been wanting to imitate the model of Trump’s official meme coin TRUMP, of which 80% is held by Trump’s CIC Digital company. Ye initially hoped to monopolize 80% of YZY as well, but after internal negotiations, he finally conceded to 70%.
How Does YZY Work?
YZY is positioned as the official cryptocurrency of the Yeezy brand, with its main function being payment for merchandise on the Yeezy website. Ye is attempting to establish a payment system free from third-party platform restrictions (such as Shopify), allowing fans to directly use YZY to purchase Yeezy products.
In terms of token distribution, YZY adopts a highly centralized model: 70% of the tokens are directly owned by Ye personally, 10% circulate in the market, and 20% are allocated to investors. To stabilize YZY’s price and avoid mass selling, the YZY held by Ye will be released through multiple staged unlocking phases, with some YZY token even being locked for up to 12 months.
YZY’s value primarily relies on two factors:
- Its connection to the Yeezy brand as an official payment tool, increasing YZY’s utility value
- Ye’s personal celebrity effect and fan economy, giving YZY characteristics of both a utility coin and a meme coin
Compared to other cryptocurrencies, YZY’s uniqueness lies in its high centralization (mostly owned by Ye) and obvious commercial application, which is both its advantage and the main reason for continued market skepticism.
What are the Features of YZY Token?
1. Celebrity Effect
YZY token fully leverages Ye’s powerful cultural influence. As a type of meme coin, its value largely depends on Ye’s celebrity effect and fan economy, rather than traditional technological innovation.
2. Based on Solana Blockchain, Higher Efficiency
YZY token is built on the Solana blockchain, allowing it to enjoy fast transaction speeds and low fees, providing users with a smoother transaction experience, especially in e-commerce payments.
3. Clear Commercial Application Scenarios
Unlike most meme coins, YZY token is positioned as the official payment token for the Yeezy brand, giving the token a value foundation beyond pure speculation.
4. Highly Centralized
70% of the tokens are owned by Ye personally. Although this unbalanced distribution method has sparked controversy, it also gives Ye powerful control.
YZY Tokenomics
YZY’s distribution structure is the most discussed aspect of this coin, with its highly centralized characteristics receiving particular attention.
The distribution proportions of YZY are as follows:
- 70% owned by Ye personally
- 20% allocated to investors
- 10% for market liquidity
YZY’s highly concentrated ownership naturally raises market concerns, as such a high proportion of internal shareholding may pose risks of price manipulation and limit the decentralized nature of cryptocurrency.
To alleviate these concerns, the 70% of YZY token held by Ye will adopt a multi-stage unlocking mechanism, with some tokens even being locked for up to 12 months, aimed at preventing large-scale selling and maintaining YZY’s price stability.
YZY’s tokenomics reflects a more alternative trend: celebrities gradually dominating cryptocurrencies. Similar projects like Trump’s TRUMP token and the LIBRA token supported by Argentina’s President Milei clearly leverage personal influence to enter the cryptocurrency market, but whether these projects will succeed in the long term, as well as their risks, remains to be seen.
Does YZY Token Have a Future?
As a celebrity token, YZY’s long-term development potential has both unique advantages and significant challenges.
Looking at the advantages, YZY has several elements that may support its future development. First, Ye has a strong fan base and global influence, providing YZY token with a huge user population. Second, YZY is directly linked to the Yeezy brand, giving it utility value that transcends highly speculative meme coins. Moreover, the multi-stage unlocking mechanism may help maintain price stability, avoiding sharp price fluctuations in the short term.
However, investors cannot ignore the potential risks: Ye personally holds 70% of YZY, which may pose risks of price manipulation; Ye’s past controversial statements and actions have caused multiple platforms to cut ties with him, and this uncertainty may affect YZY’s long-term development. Furthermore, similar celebrity tokens often experience rapid depreciation after a brief speculative boom, with the LIBRA token incident being one example.
Compared to other celebrity coins like TRUMP, although they have achieved short-term success, their long-term value remains questionable. Whether YZY can break this pattern largely depends on Ye’s long-term commitment to the project and the development prospects of the Yeezy brand.
YZY Token vs Other Celebrity Tokens
YZY vs TRUMP
YZY and TRUMP, issued by Trump, have become the focus of heated discussion. While both are cryptocurrencies endorsed by celebrities, they differ significantly in many aspects. Which one has more investment value? Let’s analyze the similarities and differences in depth.
First, in terms of token distribution structure, both YZY and TRUMP are highly centralized, but the degree of distribution varies slightly. YZY has 70% owned by Ye personally, while TRUMP tokens have 80% held by Trump’s CIC Digital company. There are reports indicating that Ye initially wanted an 80% shareholding ratio but ultimately conceded to 70%. Regardless, both projects are highly concentrated in the hands of their founders.
Looking at profit models, TRUMP tokens have already demonstrated enormous profitability. According to data, TRUMP generated nearly $100 million in transaction fees in just two weeks, mainly from Meteora exchange’s transaction fee sharing, providing a reference profit model for YZY.
In terms of market performance, TRUMP’s development trajectory may predict YZY’s trend. TRUMP rapidly climbed after issuance, with market value once exceeding $14.5 billion, but subsequently dropped by two-thirds, warning YZY investors to carefully evaluate its long-term value.
Particularly noteworthy is that, according to data analysis, large investors in TRUMP profited handsomely, with at least 50 large investors each earning over $10 million, while approximately 200,000 small holders lost funds. This unequal profit model may also appear with YZY, so small investors need to be especially vigilant.
YZY can learn from TRUMP’s strategies while also learning from the latter’s experiences. Both leverage the founder’s fan base and social influence, but YZY seems to focus more on integration with Yeezy’s commercial applications, so its future development remains to be seen.
YZY vs Argentine President’s Coin (Libra)
YZY and the Libra coin promoted by Argentine President Javier Milei also share some similarities but have differences as well.
Firstly, the similarity between the two is that both are endorsed by well-known public figures, using their influence to promote token awareness. We won’t reiterate YZY here, while Libra leveraged the authority and influence of the Argentine president.
However, YZY and Libra have obvious differences in their issuance purposes. YZY is positioned as the official token of the Yeezy brand with clear usage scenarios, while Libra was promoted as a “private project to boost Argentina’s economic growth” but lacked specific application plans.
In terms of market performance, Libra has become a cautionary tale. After Milei promoted Libra on social media, its price briefly soared, then plummeted within hours, causing thousands of investors to suffer heavy losses. It quickly evolved into a political scandal, even triggering calls for Milei’s impeachment.
For YZY, Libra’s failure is one of the reasons the YZY team delayed their issuance. The YZY team worried about being too close to the “Argentine President’s coin” incident, potentially triggering similar market reactions and regulatory issues.
Conclusion
To briefly summarize the above content, YZY token is a cryptocurrency created by American rapper Ye, with its main feature and primary purpose being the ability to pay for merchandise on the Yeezy website.
YZY’s distribution structure is highly centralized: 70% is held by Ye personally, 10% is used for market liquidity, and 20% is allocated to investors. Although this distribution model is controversial, Ye has implemented a multi-stage unlocking mechanism to stabilize YZY’s price.
The launch background of YZY is closely related to Ye’s personal controversies, as he hopes to bypass the predicament of being banned by platforms like Shopify through the censorship-resistant nature of cryptocurrency. Compared to TRUMP and LIBRA, YZY token has some similarities but also possesses its own characteristics.
For investors, YZY has both Ye’s powerful fan base and global influence, as well as some uncertainties brought by controversial events. However, its development potential still attracts significant attention in the short term, and it may become a unique presence in the cryptocurrency market in the future.
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