YEREVAN (CoinChapter.com) — Ye, formerly known as Kanye West, is launching a cryptocurrency called YZY token. The Ye token will become the official currency on his Yeezy website. This move comes after platforms like Shopify stopped working with him due to his controversial actions and Nazi remarks.
Ye Launches YZY Token With 70% Allocation Amid Shopify Fallout. Source: Satoshi ClubThe YZY token will allow Ye to avoid using traditional e-commerce platforms. Instead, fans and customers can use this crypto directly on his site. However, the token distribution is causing concern. Seventy percent of YZY tokens will go to Ye personally. Only 10% is reserved for liquidity, and 20% for investors.
Critics are comparing this allocation to the TRUMP meme coin, created by former President Donald Trump, which faced similar issues with fairness.
Ye’s Controversial Remarks Damage Business Ties
Ye’s move into crypto follows several years of controversy. In 2022, major companies like Adidas and Balenciaga ended their partnerships with him after he publicly praised Adolf Hitler. This year, he again caused outrage by selling a T-shirt with a swastika on the Yeezy website, prompting Shopify to shut down his store.
Ye’s Website Taken Down After Shopify Bans Swastika T-Shirt Sales. Source: CBS NewsBecause of these issues, Ye is now looking to cryptocurrencies, which don’t rely on centralized platforms. The Ye token is his way of continuing business despite losing traditional support.
Ye’s Previous Statements on Crypto
Earlier this month, Ye expressed skepticism about crypto, stating that cryptocurrencies “prey on fans with hype.” However, despite his previous remarks, he seems to be following the path set by Donald Trump with his TRUMP meme coin. Trump’s coin faced criticism due to 80% ownership by a company connected to Trump. Initially, Ye wanted the same 80% ownership but settled for 70%.
Risks Highlighted in Celebrity Crypto Projects
Ye’s entry into cryptocurrency has drawn attention to risks common in celebrity-backed tokens. Often, these tokens see a short rise in value followed by sharp declines. Insider ownership, such as Ye’s 70% share, can increase the risk of price instability, hurting small investors. Even with a 12-month vesting schedule locking some of Ye’s coins, critics remain concerned about the impact on retail investors.
Concerns Grow After Argentina’s Meme Coin Scandal
The recent meme coin scandal involving Argentina’s President Javier Milei has added to these concerns. Milei’s coin, LIBRA, was exposed as a pump-and-dump scheme, leading to public outrage and political fallout. Due to similarities, the YZY token team is reconsidering whether it’s appropriate to launch now. A final decision on the YZY token launch date remains undecided.
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