Ye to Launch YZY Crypto Token Amid Controversy
HONG KONG—Ye, the artist formerly known as Kanye West, who has openly identified as a “Nazi” in recent weeks, is set to launch a new cryptocurrency token named YZY, according to three sources familiar with the initiative. This token aims to provide Ye with a way to bypass online platforms like Shopify that have severed ties with him due to his inflammatory statements.
The YZY token is crafted to reflect Ye’s Yeezy clothing brand, with a staggering 70% of the total supply reserved exclusively for Ye himself. Meanwhile, only 10% will be designated for liquidity provisioning, and 20% is earmarked for investors. This strategic distribution underscores Ye’s desire to maintain control over his new venture.
Ye’s entry into the cryptocurrency realm comes on the heels of a tumultuous period marked by public controversy, which has significantly impacted his business empire. In 2022, high-profile brands such as Adidas and Balenciaga, along with his talent agency, cut ties with him following a series of antisemitic remarks. These included praising Adolf Hitler during a live interview and making derogatory comments about Jewish individuals and other marginalized groups.
The fallout from these actions escalated this year when Ye, after once again declaring himself a Nazi on social media platform X, listed a T-shirt emblazoned with a swastika on the Yeezy website. This offensive move prompted e-commerce giant Shopify to shut down his online store, further complicating his business operations.
The YZY token is being marketed as the official currency for Yeezy and will be accepted for transactions on his website. CoinDesk learned about the token’s details through an email from Hussein Lalani, an individual using a yeezy.com email address who identified himself as Yeezy’s chief financial officer. Despite sending an unsolicited document detailing the token, Lalani requested that CoinDesk hold off on publishing the information and agree to an “embargo.” CoinDesk declined the embargo, and three sources close to the project verified the information.
Lalani has not responded to additional requests for comment. Initially, the YZY token was slated for launch on Yeezy’s website on Thursday at 6:00 p.m., but the release was postponed to Friday, according to a team member who wished to remain anonymous for fear of public association with the project.
Following TRUMP
Rumors about Ye’s potential token have circulated since earlier this month, particularly after he hinted at attempting to reach out to Coinbase CEO Brian Armstrong. Ye later claimed he was “not doing a coin” despite an offer of $2 million to create one, asserting that “coins prey on the fans with hype.”
Sources close to the YZY team informed CoinDesk that Ye’s vision mirrors that of Donald Trump’s TRUMP meme coin, which was launched two days prior to his second inauguration. Trump’s coin raised eyebrows due to its substantial insider ownership distribution: currently, 80% of TRUMP is held by CIC Digital, a company linked to the former president. Ye initially sought an 80% ownership stake but ultimately settled for 70%, according to another source who requested anonymity. If YZY achieves even a fraction of TRUMP’s success, Ye’s stake could potentially translate into millions of dollars.
‘The Milei thing’
The introduction of YZY comes at a time when the market is already saturated with celebrity-driven cryptocurrency projects, many of which have faced accusations of exploiting fan loyalty without delivering real value. Typically, these tokens experience brief surges in price fueled by hype, only to plummet, leaving retail investors at a loss.
The concentrated ownership structure further exacerbates the risk of abrupt price declines. According to an unsolicited press release regarding YZY, Ye’s 70% stake is organized through a multi-phase vesting schedule, with certain coins locked for periods of up to 12 months, preventing any sales during that timeframe. Critics, however, argue that such insider-heavy allocations disproportionately benefit founders over everyday investors.
In a parallel situation, just this week, Argentina found itself embroiled in a political crisis after a meme coin endorsed by President Javier Milei, named LIBRA, was revealed to be a “pump-and-dump” scheme. This revelation incited public outrage and sparked calls for impeachment. A source close to YZY disclosed to CoinDesk that the token’s launch delay stems from the team’s consideration of whether it is “too close to the Milei thing.”
