Kanye West Launches YZY Coin After Criticizing Memecoins | Fans Divided over Controversy
Edited By
Fatima Zahra
Kanye West, now known as Ye, ignited a frenzy by launching his own cryptocurrency, YZY, despite his earlier claim that such coins exploit fans. This about-face has raised eyebrows and stirred heated discussions among people online.
The Coin's Wild Ride
In February, West dismissed the idea of creating a crypto coin, stating, "I’M NOT DOING A COIN. COINS PREY ON THE FANS WITH HYPE." Yet, just last week, his X account declared the arrival of YZY in what some believe to be a calculated move. A video clip, where he appeared almost robotic, announced, "The official Yeezy token just dropped," leading many to speculate about its authenticity and desire to invest.
As trading kicked off, YZY’s value soared to $3 billion but then spectacularly dropped two-thirds within just a few hours. Over the course of trading, more than $740 million was exchanged, with blockchain analytics firm Nansen reporting that most traders incurred losses, totaling over $20 million.
Mixed Reactions from the Community
Comments on forums reflect a mix of disbelief and condemnation.
One user wrote, "YZY coin dropped so fast it made Kanye’s Adidas deal look stable."
Another commented, "At least he was honest lol. He basically told his fans he was going to grift them."
It's clear from reactions that many believe West is exploiting his fanbase for profit. A user bluntly stated, "Every single celebrity coin had the exact same result."
"Money is money for him, I guess…" – a critical remark that sums up the sentiment.
The Bigger Picture
Kanye's erratic behavior has been well-documented, especially following his problematic remarks in 2022 that resulted in Adidas cutting ties with him. The YZY coin launch is part of a larger initiative called YZY Money, which is said to include a crypto payments service and a debit card. As the website promises, "YZY Money is a concept to put you in control, free from centralized authority." However, opinions differ on whether this is a genuine innovation or just another grab for cash.
Key Insights:
🔻 YZY coin's value surged to $3 billion, then plummeted by two-thirds.
✏️ Investors recorded combined losses exceeding $20 million.
📉 "Every single celebrity coin had the exact same result" – a user lamented the pattern.
As reactions pour in, the implications of Kanye’s shift in stance on cryptocurrencies continue to unfold. How will this affect his relationship with fans, and what might it mean for the future of celebrity-backed cryptocurrencies? Only time will tell.
Unfolding Trends in Crypto
As the dust settles on the YZY coin launch, there's a strong chance that Kanye West’s brand will continue to polarize. While some fans may choose to steer clear of his future ventures, others might still be drawn in by his celebrity status. Experts believe that the volatility seen with YZY could lead to a cautious approach from investors in celebrity-backed coins. Approximately 60% of retail investors may refrain from engaging with coins launched by celebrities moving forward, given the trend of steep price drops following initial hype. However, West's unique ability to generate buzz could still keep a segment of fans engaged, leading to fluctuations in value that may mimic patterns observed with other celebrity projects.
A Historical Echo from the Past
In the 1990s, the rapid rise and fall of Beanie Babies serve as a somewhat fitting comparison. Known as a collectible craze, many rushed to invest, believing they would secure future wealth. However, once the novelty wore off, values plummeted, leaving many collectors disillusioned. Much like the YZY experience, the emotional attachment to Beanie Babies didn't shield enthusiasts from the market's harsh realities. Similarly, as Kanye’s YZY coin faces scrutinized validity, echoes of previous fads remind us that passion alone often isn't enough to sustain long-term financial success.