Kanye West has announced the launch of his new cryptocurrency YZY Money on the Solana blockchain. This event has generated significant interest in the market.
Launch of YZY Money and Market Reaction
Kanye West unveiled a new cryptocurrency YZY Money, abbreviated as YZY, on the Solana blockchain. Following the announcement, YZY’s market capitalization soared to $3 billion within 40 minutes, and its price skyrocketed by 6,800%, peaking at $2.10 before retracting due to profit-taking. The rapid interest in the cryptocurrency was fueled by West’s social media activity and a $20,000 launch prize pool. However, at the time of writing, YZY coin traded at $0.9890, reflecting a 60% decline.
Concerns Regarding Centralization and Liquidity
West announced that YZY would be integrated as a payment method in Yeezy’s online fashion store. Yet, concerns about centralization arose with 70% of the total supply under West’s control, leading to fears about price volatility. Intensifying the debate, analysts pointed to the cryptocurrency’s pool architecture, where only YZY was added without pairing with stablecoins like USDC. This setup has faced criticism for allowing developers to manipulate the pool and sell at high prices, thus causing sudden value drops.
Risks of Celebrity-Linked Cryptocurrencies
Discussions around YZY coin evoke memories of other celebrity-linked crypto incidents. Argentina’s President Javier Milei’s promoted LIBRA plummeted after reaching a $4 billion market cap, sparking significant backlash. Similarly, Donald Trump’s TRUMP crypto stirred heated debates, shedding more than $7 billion from its peak market value within the year. YouTuber Logan Paul’s CryptoZoo project, launched in 2021, also faced allegations of a “rugpull” when promised objectives were not met. Paul initiated partial refunds in 2024, although lawsuits concerning fraud allegations remain unresolved. The swift rise and subsequent fall of YZY, viewed alongside these past events, bring the influence of celebrity endorsements in the market into question.
The launch of YZY Money illustrates both the appeal and risks of cryptocurrencies linked to celebrities. This event highlights the importance of analysis and cautious approaches when considering such investments.
