You can also read this news on COINTURK NEWS: Kanye West Launches YZY Money on Solana Blockchain, Sparking Major Market Reactions
Kanye West has unveiled a new cryptocurrency named YZY Money, abbreviated as YZY, on Solana ‘s blockchain. After the announcement, YZY’s market capitalization soared to $3 billion within 40 minutes and its price skyrocketed by 6,800%, peaking at $2.10 before retracting due to profit-taking. The rapid interest in the cryptocurrency was fueled by West’s social media activity and a $20,000 launch prize pool. However, during the preparation of this article, YZY coin traded at $0.9890, reflecting a 60% decline.
West announced YZY would be integrated as a payment method in Yeezy’s online fashion store. Yet, concerns about centralization arose with 70% of the total supply under West’s control, leading to fears about price volatility. Intensifying the debate, analysts pointed to the crypto‘s pool architecture, where only YZY was added without pairing with stablecoins like USDC. This setup has faced criticism for allowing developers to manipulate the pool and sell at high prices, thus causing sudden value drops.
Additionally, blockchain researcher Lookonchain identified wallets engaged in early acquisition and large profit withdrawals, with one particular wallet reportedly turning $450,000 into about $1.5 million. Conor Grogan, a Coinbase director, highlighted that 94% of the initial distribution was in the hands of insider wallets, with a single multi-signature wallet holding 87% of the supply.
The discussions around YZY coin evoke memories of other celebrity-linked crypto incidents. Argentina’s President Javier Milei’s promoted LIBRA plummeted after reaching a $4 billion market cap, sparking significant backlash. Similarly, Donald Trump’s TRUMP crypto stirred heated debates, shedding more than $7 billion from its peak market value within the year.
YouTuber Logan Paul’s CryptoZoo project, launched in 2021, also faced “rugpull” allegations when promised objectives were not met. Paul initiated partial refunds in 2024, although lawsuits concerning fraud allegations remain unresolved. The swift rise and subsequent fall of YZY, viewed alongside these past events, bring the influence of celebrity endorsements in the market into question.
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By COINTURK NEWS
about 5 hours ago
