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Kanye West, aka Ye, is trending with the imminent release of his cryptocurrency, the YZY memecoin. This is a major departure from his former views on cryptocurrencies.
Launch Date and Delays
Originally set for release on February 20, 2025, the YZY memecoin release was delayed to February 21 without a stated reason. Sources indicate that fears over what people perceive about such projects, particularly after recent scandals surrounding celebrity-endorsed crypto ventures, could have played a role in pushing back the launch.
Tokenomics and Ownership Structure
The tokenomics of YZY expose an extremely centralized ownership structure:
70%: Directed to Ye himself
10%: To be used for liquidity provision
20%: Held in reserve for investors
This allocation has drawn concern, since this kind of centralization can be problematic for investors and is against the decentralized spirit of most cryptocurrencies.
Reversal on Cryptocurrency Stance
The action is especially shocking in the wake of Ye’s previous comments. On February 9, he publicly announced, “I’m not doing a coin. I only do what I care about and know about. Coins take advantage of the fans by means of hype.” The sudden turnabout has prompted debate regarding his actual reasons, some seeing it as an authentic interest in economic freedom and others looking for a profiteering on the meme coin phenomenon.
Industry Issues and Comparisons
The release of YZY follows in the wake of scandals involving other celebrity-backed cryptocurrencies. Specifically, Argentina President Javier Milei endorsed the LIBRA meme coin, which reached a $4.5 billion market cap before collapsing amidst accusations of being a pump-and-dump scheme. Likewise, Donald Trump’s TRUMP meme coin was criticized for its centralized ownership, with 80% of its supply owned by entities associated with the former president. These cases have raised eyebrows regarding celebrity-backed crypto projects. Risks for Investors
The centralized nature of YZY has been warned to bear great risks by analysts. The high token concentration in the hands of Ye risks liquidity and possible manipulation. Furthermore, the overnight change of mind about cryptocurrencies and the rushed launch are question marks regarding the sustainability of the project over the long term as well as motives.
Kanye West’s foray into the world of cryptocurrencies with the YZY memecoin is an ambitious venture that has both drawn excitement and raised eyebrows. Would-be investors are cautioned to research extensively and use their best judgment, given the centralized tokenomics and stormy past of celebrity-endorsed cryptocurrencies.
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