This time, Kanye is at the forefront of the crypto wave with his $YZY
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This time, Kanye is at the forefront of the crypto wave with his $YZY
Kanye once said he wouldn't launch a token to deceive his fans.
Navigating Web3 tides with focused insightsAuthor: San, TechFlow
This morning, a tweet from Kanye West sent shockwaves through the crypto market.
The legendary musician, who has previously claimed multiple times that he would launch a meme coin, finally revealed the contract address for the YZY token on Twitter.
The news spread rapidly, and the number of YZY token holder addresses surged to 28,200 within just forty minutes.
Perhaps to dispel public doubts about a "hacked account," Kanye later posted an "authentication video" to confirm this was indeed his meme coin, though his demeanor appeared somewhat "disoriented."
Alongside the YZY token, the YZY Money official website also launched. According to the site, YZY Money aims to resist centralized authority. The website also features two projects built on the YZY ecosystem: YZY Pay and YZY Card, targeting the popular sectors of crypto payments and cryptocurrency debit cards respectively.
YZY Pay is described as a cryptocurrency payment processor that merchants can integrate into their websites or apps, offering consumers a simple and fast payment experience with lower transaction fees compared to traditional payment channels. YZY Card is a cryptocurrency debit card supporting top-ups in YZY, USDT, and USDC, allowing users to spend their crypto directly without intermediaries.
Currently, YZY payment options have also been added to the official website of Kanye’s brand, Yeezy.
After Kanye's tweet, the YZY token price spiked to $3.43 before dropping to $1.80 within half an hour.
According to HTX market data, the surge in YZY caused liquidity "drain" from major cryptocurrencies, leading to a short-term decline in mainstream coins.
Kanye’s YZY is hard not to compare with the Trump meme coin launched earlier this year. Both are "celebrity coins," both were confirmed by the individuals themselves after facing skepticism, and both triggered liquidity drain effects on mainstream cryptocurrencies. Interestingly, both figures have previously run for U.S. President.
However, unlike Trump’s coin, which quickly sparked massive market FOMO and support, YZY has been plagued by allegations of insider trading, pre-mining ("rat warehouse"), and various negative revelations since its launch.
According to information from the YZY Money official website, to prevent "sniping," the team deployed 25 YZY contract addresses and randomly selected one as the final verified address, reducing the chance of guessing the correct contract address (CA) in advance to just 4%.
The market rejected this anti-sniping measure, widely mocking the team as clowns.
On the other hand, Coinbase executive Conor Grogan posted on social media stating: "In my estimation, at least 94% of YZY tokens are held by insiders; 87% are held by a single multisig wallet (now distributed across multiple wallets); over 3% were bought via large single transactions by multiple pre-prepared wallets when the market opened; more than 7% are in liquidity pools."
On-chain purchase records show that an insider wallet, 6MNWV8, had already attempted to buy yesterday and purchased 1.29 million YZY tokens today at $0.35 upon Kanye’s announcement, then dumped about 80% of the holdings at $1.39, profiting over $1.5 million.
In addition, two other insider wallets bought 1.89 million YZY tokens at $0.24 and later sold 84% of their holdings at $2.12, making a profit of $1.47 million.
A series of revelations seem to point toward one conclusion—that this token launch is a collaboration between a crypto team and Kanye, leveraging his fame and influence to profit.
Crypto influencer Scooter also suggested that Hayden Davis, the issuer behind the so-called "Argentine President Coin" Libra—which previously scammed countless crypto investors—was involved in the YZY token launch, noting the models are highly similar.
More coincidentally, five hours before Kanye announced the YZY launch, a U.S. judge lifted the freeze on $57.6 million tied to the Libra token, with one of the wallets under Hayden Davis’s control.
Outside the crypto world, Kanye West has attracted a massive fanbase through his exceptional music and occasional "performance art." He has long been seen by fans as someone "uncompromising and rebellious."
Ironically, earlier this year, during the peak popularity of the Trump token and the subsequent "celebrity coin season," Kanye claimed that a token team had offered him $2 million to launch a meme coin, but he refused, stating he wouldn’t issue a coin to deceive his fans.
Yet less than two weeks after that statement, Kanye announced he would be launching the YZY token, sparking strong backlash from the market.
As of now, the YZY token price has dropped below $1.10, trapping countless crypto investors who chased the hype and passively becoming Kanye’s "fans." Polymarket has even created a prediction market for YZY, and market FOMO has gradually turned into anger and mockery toward Kanye.
At this point, based on the leaked information and ongoing market discussions, Kanye—who has frequently stood at the center of entertainment industry controversies—is once again at the heart of crypto controversy.
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