A Magical Reversal: Kanye West Changes His Stance and Plans to Launch a Cryptocurrency $YZY

TL,DR

Rapper Kanye West has been reported to be planning the launch of his personal cryptocurrency, “$YZY,” in an attempt to create a new revenue stream for his Yeezy brand. However, the token distribution structure reveals that Kanye will retain 70% of the total token supply, raising concerns about cash-grabbing and market manipulation. Combined with his recent business struggles caused by controversial remarks and the frequent failures of celebrity token projects, the future of $YZY remains uncertain.

From Rejecting Crypto to Preparing $YZY

Kanye West has repeatedly expressed strong distrust toward cryptocurrencies in public.

Earlier this year, he even posted on social media claiming to have rejected a $2 million token proposal and labeling cryptocurrencies as “a scam to exploit fans.” This statement attracted widespread attention at the time, with many interpreting it as a critique of the celebrity cryptocurrency phenomenon. However, just a few months later, his stance has undergone a dramatic reversal. According to the latest reports, Kanye is now preparing to launch his personal cryptocurrency, “$YZY.”

In fact, similar reversals have occurred with Kanye in the past. In 2021, Kanye and his collaborators released several NFT merchandise products. However, by February 2022, Kanye abruptly declared on social media: “Stop asking me to do NFTs,” claiming he was focused on real-world creations like food and fashion. Yet, just three months later, he filed trademarks for metaverse and NFT-related products under his Yeezus brand and even deleted his previous negative remarks about NFTs.

According to reports, Kanye’s latest token project aims to use $YZY as a payment method for Yeezy-branded products, circumventing bans imposed by mainstream e-commerce platforms like Shopify. However, the token distribution plan reveals that Kanye will retain 70% of the total supply, with only 10% allocated for market circulation and 20% for early investors. This distribution ratio has sparked widespread criticism, many accusing the project of being a cash grab rather than genuine blockchain innovation.

Although Kanye’s team has tried to position $YZY as a forward-looking payment tool, the public remains unconvinced. Some netizens mocked the project, saying, “Aren’t tokens a scam? Keeping 70% for yourself – is that really love for your fans?” Others pointed out that this token distribution mechanism gives Kanye absolute control over the token price, posing significant risks.

Cryptocurrency: Kanye’s Tool for a Comeback?

In recent years, Kanye West’s business empire has faced severe crises due to a series of controversial remarks and actions.

In 2022, he made antisemitic comments and publicly praised Hitler, leading brands like Adidas and Balenciaga to terminate their partnerships with him, causing a significant decline in Yeezy’s revenue. It is estimated that the termination of his Adidas deal alone resulted in a loss of over $1 billion in income.

This year, Kanye once again sparked outrage by posting products featuring Nazi symbols on social media, which ultimately led Shopify to shut down his online store. These incidents have nearly destroyed Kanye’s brand image and business collaborations. Against this backdrop, he has turned to the cryptocurrency space, hoping to create a new revenue stream for the Yeezy brand by launching $YZY.

However, this plan has not quelled public skepticism. First, Kanye’s recent actions have made him a highly controversial figure, with trust from mainstream businesses and the public at an all-time low. Second, the $YZY launch plan lacks transparency, with limited information about the token’s specific use cases, technical support, and long-term development strategy. Most importantly, Kanye’s high level of control over the token supply has raised concerns about whether this could turn into a “pump-and-dump” speculative scheme.

On social media, Kanye attempted to boost $YZY’s credibility by interacting with leaders in the crypto industry. He has publicly sought advice from several prominent figures in the crypto space. However, those individuals stated that no further collaboration has taken place, making these interactions seem more like publicity stunts than genuine technical partnerships.

Risks of Celebrity Tokens

The phenomenon of celebrities launching cryptocurrencies is not new, but most such projects ultimately fail due to a lack of real value.

The launch plan for $YZY has raised the following concerns:

First, the token distribution is highly concentrated, creating significant risks of market manipulation. According to reports, Kanye West will hold 70% of the $YZY token supply. This highly centralized allocation means he has absolute control over the token’s price. Theoretically, he could manipulate market liquidity to artificially inflate the price and then cash out. Such “pump-and-dump” schemes are not uncommon in the cryptocurrency space, and many similar projects have resulted in substantial losses for investors.

Second, the project lacks transparency, making it difficult for investors to evaluate risks. Currently, there is very limited information about the specific use cases and technical support for $YZY. Although Kanye’s team claims the token will be used for Yeezy product payments, no detailed technical implementation plans or partnership information has been provided. Additionally, it is unclear whether $YZY will face scrutiny from regulatory authorities. Given Kanye’s controversial actions in recent years, it remains questionable whether his team has the capability to launch a compliant cryptocurrency project.

Furthermore, celebrity tokens have left behind too many cautionary tales. In the past, many celebrity-backed cryptocurrency projects have ended in failure. For example, the token project Centra, promoted by boxer Floyd Mayweather and music producer DJ Khaled, became embroiled in scandals. Such cases have significantly undermined the credibility of celebrity tokens. Whether $YZY will follow in the footsteps of these failed projects remains to be seen.

Faced with the launch of $YZY, investors need to stay calm and avoid being swayed by celebrity influence and market hype. For $YZY, investors must determine whether it can truly provide long-term value for the Yeezy brand, rather than merely serving as a short-term speculative tool. Reports have even surfaced suggesting that Kanye may have sold his Twitter account, with claims that content related to the token was posted by the token team rather than Kanye himself. Several crypto influencers have questioned whether Kanye West’s X account has been sold, possibly involving the BarkMeta team, which has been linked to previous crypto scam projects.

Regardless, Kanye’s $YZY project is undoubtedly a highly controversial endeavor. For fans, supporting their idol does not necessarily mean participating in token investments; for investors, rational analysis and cautious decision-making are key to avoiding losses. In the cryptocurrency space, while celebrity influence can generate short-term market buzz, projects that stand the test of time often require a solid technical foundation and clear long-term value. Whether $YZY will be an innovation or a cash grab remains to be seen.