Kanye West's YZY coin debuts on Solana, immediately sparks legitimacy debate

Hip hop artist Ye, formerly known as Kanye West, has announced a new Solana-based cryptocurrency, “Yeezy Money (YZY),” sparking a whirlwind of massive investment, intense skepticism, and allegations of insider trading.

Taking to X (formerly known as Twitter) promotes his cryptocurrency, stating, “ a new economy, built on chain.”

YZY coins are designed as a tool for financial liberation from centralized authority, showcasing a comprehensive ecosystem that includes a payment processor and a credit card.

The token saw an explosive start, soaring up to a staggering $3 billion market capitalization within just 40 minutes of its launch.

But the venture is overlaid with doubt. The launch directly denies Ye’s February statements, where he claimed not to launch a coin, stating they “prey on the fans with hype,” and revealed he had been offered $2 million to promote a fraudulent token.”

On-chain experts also raised concerns, indicating several red flags.

According to Coinbase Director Conor Grogan, approximately 94% of the token supply was held by insiders prior to the launch, with one wallet controlling 87%.

Industry experts also highlighted that the liquidity pool structure enables developers to see tokens at any time.

Despite these warnings, the token got the attention of high-profile crypto traders betting on its volatile momentum, with one wallet reportedly netting a $3.4 million profit.

While Ye’s website lists YZY coin as a payment option, the launch’s integrity is being questioned due to lending some legitimacy, the combination of his contradictory statements, the token’s rapid price collapse from its peak and the concentration of tokens in insider wallets.