Kanye West, now known as Ye, has officially entered the cryptocurrency market with the launch of YZY, a token built on the Solana blockchain. The debut on August 21, 2025, was marked by significant price fluctuations and has drawn accusations of insider trading and concerns over token distribution.
Ye announced the launch of YZY on his X account, stating it would be the foundation of "a new economy, built on chain." This announcement led to an immediate surge in the token's value, with its market capitalization briefly exceeding $3 billion within an hour. However, this initial surge was followed by a sharp decline, with the market capitalization falling to approximately $1.05 billion due to substantial selling pressure.
On-chain data has fueled concerns about potential insider trading, with analysts identifying specific wallets that appeared to have prior knowledge of the YZY contract address. One wallet reportedly purchased 1.29 million YZY tokens at approximately $0.35 each, subsequently selling a portion for a profit exceeding $1.5 million. This activity suggests that individuals with privileged information may have profited from the launch.
Further questions about the token's integrity arise from its distribution. Yeezy Investments LLC reportedly controls a significant 70% of the total supply. This high degree of centralization has led to concerns about potential market manipulation and the long-term viability of the token. While celebrity endorsements can boost visibility, they also carry risks of extreme volatility and can overshadow the asset's underlying value.
The YZY token's website itself includes a disclaimer warning of the potential for total loss, serving as a reminder of the speculative nature of such ventures, particularly when compared to more established cryptocurrencies like Bitcoin and Ethereum.