Rapper Kanye West, also known as Ye, has launched a new cryptocurrency called YZY. The meme coin, which is based on the Solana blockchain, was launched without any prior announcement. It is not clear what the purpose of the coin is or whether it is backed by West’s company, Yeezy.
Kanye West unveiled a meme coin named “YZY” based on Solana on Thursday, which immediately sparked volatile trading that saw its market valuation rise and fall within hours.
According to CoinGecko, the token experienced a nearly 1,000% increase in market capitalization within minutes of its debut, briefly reaching a value of approximately $3 billion before declining to roughly $137 million.
In a video posted to his X account, West announced that the official Yeezy token had just been released. He also provided a link to Yeezy Money, a website described as a “concept to put you in control, free from centralized authority.”
YZY was introduced on the project’s website, in addition to a crypto payment processor called Ye Pay and a debit card called YZY Card.
Insiders Move Quickly To Cash In On YZY Frenzy
Insiders promptly capitalized on the hysteria, as evidenced by on-chain data. Lookonchain, an analytics platform, reported that a single buyer spent 450,000 USDC to acquire 1.89 million YZY at $0.24 through two wallets.
The same investor subsequently sold 1.59 million tokens for 3.37 million USDC at $2.12, generating a profit of over $3.4 million. He continues to retain approximately $510,000 in YZY. One wallet even paid $24,000 in priority fees to guarantee an early entry.
Speculative Wave In Meme Coins Driven By Political Tokens
Despite the pullback from its apex, trading activity remained intense. YZY is priced at just over $1 and has a circulating supply of approximately 130 million tokens, with a 24-hour trading volume exceeding $386 million. Market data also indicated that the top six holder addresses collectively control over 90% of the token supply.
The introduction coincides with the resurgence of the broader crypto market, which has seen a total market value of $4 trillion. Wall Street institutions are increasing their exposure to digital assets, as Bitcoin has reached record highs.
The rise of politically-linked tokens, including Donald Trump’s cryptocurrency, has helped fuel speculative interest in meme coins.
Fast Transactions And Low Fees Fuel Solana’s Popularity
For West, the move represents his most significant entry into crypto after a string of indirect ties to the industry. JPMorgan Chase terminated his account in 2022 due to his controversial statements, concurrently with the decline of his billionaire status. According to Forbes, his net worth has decreased from $2 billion to approximately $400 million.
The YZY launch also refers to Solana’s role as a hub for meme tokens. Solana has emerged as the preferred blockchain for viral initiatives and speculative trading due to its low fees and rapid transaction speeds. West is joining a wave of meme coin issuers capitalizing on the network’s increasing prominence by selecting Solana.
Meme coins, often created around quips, internet culture, or celebrity figures, have increasingly crossed into mainstream finance. Their prices are more likely influenced by attention and publicity than by technical fundamentals.