Kanye West Unveils Memecoin (YZY), Soars to $3 Billion Before Plummeting Amid Internal Turmoil
We independently review everything we recommend. When you buy through our links, we may earn a commission which is paid directly to our Australia-based writers, editors, and support staff. Thank you for your support!
Quick Read
- Kanye West, now referred to as Ye, debuts memecoin YZY on the Solana blockchain.
- YZY’s market capitalization skyrocketed to US$3 billion before plummeting amid insider turmoil.
- Initially, 94% of YZY’s total supply was held by insiders, prompting fears of market manipulation.
- YE Pay and YZY Card enhance YZY’s functionality beyond being merely a meme.
- Within 24 hours, the memecoin’s market cap fell below US$1 billion.
- Critics alleged that the venture might be a potential “rug pull” scheme.
- The launch sparked legal issues and a backlash on social networks.
Kanye West Steps into Cryptocurrency With YZY
Kanye West, now recognized as Ye, has embarked on a journey into cryptocurrency with the introduction of his memecoin, YZY. The announcement was made through a post on X, presenting the coin as an innovative financial concept tied to his Yeezy label. However, the launch quickly became one of the most disputed crypto events since Hawk Tuah.
Technical Overview of YZY
YZY is developed on the Solana blockchain, selected for its rapidity and economical nature, making it a preferred choice for memecoins. Most trading takes place on the Meteora decentralized exchange. Even with a liquidity pool established, early worries surfaced regarding its capacity for swift exits.
Supply and Allocation
The aggregate supply of YZY is limited to 1 billion tokens. The distribution approach aimed to discourage sniping, yet it was unsuccessful. An innovative anti-sniping mechanism was applied, employing 25 contract addresses with one being randomly selected for the official YZY. Nevertheless, 94% of the supply was initially in the hands of insiders, including a multisig wallet controlling 87%, which raised concerns.
Connected Tools
In addition to the coin, Kanye launched YE Pay, a cryptocurrency payment processor that promises lower fees for businesses. Furthermore, the YZY Card enables users to utilize YZY and USDC in transactions worldwide. These features place YZY within a larger ecosystem, although its success depends on sustaining value and trust.
Price Boom and Collapse
YZY saw a dramatic increase, surging by over 1,000% in just 40 minutes from the launch, hitting a market capitalization of US$3 billion (A$4.5 billion). This increase drew a large number of traders. However, within a day, the value of the coin decreased by 66%, reducing the market cap to below US$1 billion. Currently, YZY is trading at approximately US$0.86 per token, with a market cap of US$258 million (A$387 million).
The Emerging Controversy
What started as a buzz soon unraveled into controversy, with claims of insider trading and biased distribution. The single-sided liquidity pool on Meteora allowed insiders to retain control, leading to allegations of prospective “rug pull” strategies. Investigations indicated that a small number of wallets gained a substantial profit, while more than 56,000 users incurred losses.
Legal Escapes and Reactions
The project’s terms encompass a class action waiver, transferring potential legal responsibilities to users. Social media platforms were filled with claims of scams and rug pulls. This situation underscores the dangers of celebrities initiating memecoins, often resulting in monetary losses for supporters and tarnishing reputations.
Conclusion
Kanye West’s venture into the cryptocurrency market with the YZY memecoin rapidly became contentious. Despite an initial valuation surge, insider conflicts and distribution challenges led to a notable decline. The complexities of the launch and the following backlash serve as a cautionary tale for celebrities entering the digital currency landscape.