Rapper Ye Launches YZY Token With Market Cap Reaching $3 Billion

The explosion came unexpectedly.

Ye is a talented artist whose work has had a major impact on music, fashion, and pop culture. He has long been interested in blockchain technology and decentralized finance. Ye has rejected previous token offers out of concern that they would exploit his fans. Instead, he decided to launch YZY as part of the “YZY Money” ecosystem, which is supposed to be a new economy without intermediaries. The token works with Ye Pay (a cryptocurrency payment processor) and YZY Card (a debit card) to create a payment system that only the Yeezy brand can use.

The launch took place on Solana, a blockchain popular for memecoin projects due to its speed and low fees. Ye appears to be motivated by a desire to use his power to create his own financial ecosystem and join the growing memecoin trend, fueled by projects like Donald Trump's TRUMP and Javier Milei's LIBRA.

YZY’s market cap skyrocketed to over $3 billion in just 40 minutes after its release, showing a lot of support from fans and traders. However, the price quickly fell to $1.05 billion, showing the usual volatility of memecoins. There are currently around 130 million of these coins in circulation, out of a total of 1 billion. The trading volume in the last 24 hours was over $965 million, showing a lot of interest in the market.

This drop has raised concerns about the liquidity mechanism. Only YZY is added to the liquidity pool, not a stablecoin like USDC. This means that developers or large holders can change liquidity and take profits at any time. This is similar to previous memecoin crashes like LIBRA, making people wonder how long YZY will last.

Potential risks

Despite the promises, YZY still faces many risks:

Reports suggest that some internal wallets knew the contract address in advance and made early trades, reaping significant profits, raising questions about fairness. The drop in value from $3 billion to $1.05 billion in a short period of time suggests high risk, especially for non-professional investors, which could lead to a loss of confidence if the trend continues. With the majority of the supply locked up in the hands of Yeezy and his partners, the long-term value of YZY depends largely on Yeezy’s development strategy, which is unclear in terms of practical application. Regulators in the United States and internationally are likely to scrutinize the project, especially regarding centralization and potential money laundering.

Evaluation and Conclusion

The launch of Ye’s YZY token on August 21, 2025, with a market cap of $3 billion according to Nansen, was a shock in the crypto industry, demonstrating the power of celebrity influence and the memecoin trend on Solana. However, behind the initial excitement were concerns about centralization, internal manipulation, and sustainability, which have left the project facing many challenges. If Ye and the Yeezy team can turn YZY into a truly useful financial ecosystem, the token could overcome the memecoin myth.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.