Ye, the artist formerly known as Kanye West, who has recently made headlines for repeatedly calling himself a "Nazi," is reportedly diving into the world of crypto with his own token, sources close to the project reveal.

This move into cryptocurrency offers Ye, who now goes by Ye, a censorship-resistant platform to leverage his fame and brand. The planned YZY token, named after his popular Yeezy brand, will reportedly allocate a whopping 70% of its supply directly to Ye. In contrast, only 10% is earmarked for providing liquidity – essentially ensuring smooth trading – and 20% for investors.

This crypto venture comes at a turbulent time for Ye. Years of public controversies have significantly impacted his business relationships. In 2022, major brands like Adidas and Balenciaga, along with his talent agency, cut ties with Ye following a series of antisemitic remarks. These included praising Adolf Hitler in an interview and spreading inflammatory rhetoric online.

The fallout continued into this year. After again declaring himself a Nazi on social media and listing a swastika-emblazoned T-shirt on the Yeezy website, e-commerce giant Shopify shut down his online store.

Despite the controversies, the YZY token is being positioned as the official digital currency of the Yeezy brand and is intended for use as payment on his website.

News of the YZY token broke through an unsolicited email sent to CoinDesk from Hussein Lalani, who identified himself as Yeezy's chief financial officer and used a yeezy.com email address. Lalani shared a document detailing the token but requested an embargo on publication, which CoinDesk declined. Three independent sources familiar with the project have since confirmed the authenticity of the document. Lalani has not responded to further requests for comment.

Initially scheduled for launch on the Yeezy website on Thursday at 6:00 p.m., the YZY token launch was postponed to Friday, according to a team member who wished to remain anonymous.

Following the TRUMP Meme Coin Model

Rumors of a potential Ye token have been circulating since earlier this month, sparked by Ye himself teasing his attempts to contact Coinbase CEO Brian Armstrong.

Interestingly, Ye had previously stated he was "not doing a coin," even after being offered $2 million to create one. He even commented that "coins prey on the fans with hype."

Sources within the YZY team told CoinDesk that Ye's strategy appears to be inspired by Donald Trump’s TRUMP meme coin. Trump launched his token just days before his second presidential inauguration, raising eyebrows with a similar allocation strategy where 80% of the TRUMP supply is held by CIC Digital, a company linked to the former president.

Despite his earlier seemingly negative comments on crypto, Ye's tweets from February 7th suggested a change of heart:

Coins prey on fans with hype.

— Kanye West (@kanyewest) February 7, 2025

And shortly after:

I’m gonna make my own #crypto stuff soon.

— Kanye West (@kanyewest) February 7, 2025

These tweets were interpreted by some as Ye's attempt to regain public attention and relevance, potentially bypassing traditional media criticism.

Navigating the Celebrity Meme Coin Landscape – and Avoiding Pitfalls Like 'The Milei Thing'

The YZY token is entering a crowded market of celebrity-endorsed crypto projects. Many of these have faced criticism for potentially exploiting fan loyalty with tokens that lack real-world utility. Often, these celebrity meme coins experience a brief surge in price fueled by hype, only to crash dramatically, leaving everyday investors with losses.

Ye, the rapper formerly known as Kanye West, is planning to launch a token. (Edward Berthelot/Getty Images)

The significant insider ownership of YZY adds to the risk of price volatility. According to press materials from Ye's team:

We're proposing a multi-phase vesting schedule for our early holders.

— @kanyewest via Twitter

Critics argue that such token distributions, heavily favoring insiders, still put retail investors at a disadvantage. Recent events highlight these risks. Argentina, for example, faced political turmoil after a meme coin endorsed by President Javier Milei was accused of being a pump-and-dump scheme. This incident triggered public anger and even calls for impeachment.

A source close to the YZY project explained that the launch delay is partly due to concerns about avoiding similar pitfalls encountered by other celebrity crypto ventures:

We've considered if we should take more risks than others because we want something better than what happened last time.

— @kanyewest via Twitter

Will the YZY token be another fleeting celebrity hype coin, or can Ye navigate the complexities and controversies to create a successful and sustainable crypto project? The meme coin world – and Ye's fans – are watching closely.