- Kanye’s new memecoin could disrupt the already volatile memecoin market.
- Will Ye’s crypto debut repeat the same speculative hype or create a fresh boom?
Kanye West, now known as Ye, is preparing to launch his own memecoin next week, adding to the volatility already shaking the memecoin market.
This comes after Ye distanced himself from the YZY tokens circulating in the market, calling them “fake,” and confirmed his intention to introduce a new currency tied to his Yeezy brand.
The announcement has raised eyebrows, especially after Ye followed Binance’s CEO CZ and reposted his tweets, suggesting a potential collaboration.
Given the history of celebrity-backed tokens crashing and the recent wave of high-profile rug pulls, concerns are growing that Ye’s entry into the market could further destabilize the already shaky ecosystem.
After all, this is the same Ye who once declared himself “a god” — so when it comes to his latest venture, maybe we should expect nothing less than divine intervention.
Regardless, here’s what you need to know.
Kanye and crypto: What’s going on?
On the 22nd of February, Ye announced that all YZY tokens currently circulating in the market are “fake,” distancing himself from the existing coins and reaffirming his plan to launch his own cryptocurrency.
Source: X
It’s been revealed that Ye will likely control 70% of the supply, with 20% set aside for investors and 10% reserved for liquidity.
His holdings are expected to be subject to a one-year vesting period, preventing him from accessing the full amount immediately.
These structural details have fueled speculation and growing interest in the potential launch, but it has also drawn mixed reactions from the crypto community.
While some are excited about the link to his high-profile brand, others remain skeptical, recalling the frequent failures of celebrity-backed tokens.
The Kanye crypto launch: Another speculative bubble?
Ye’s token launch is already raising concerns about another speculative bubble, especially given the volatile history of celebrity-backed tokens.
In recent years, high-profile figures have often promoted tokens that eventually led to rug pulls, and many investors are wary of repeating these cycles.
The current state of the memecoin market, already prone to rapid surges and crashes, has left some wondering if Ye’s new venture will follow suit.
While Ye’s Yeezy brand is a powerful endorsement, the potential token’s launch via Solana-based platforms such as Pump.fun has raised questions about the potential for another speculative frenzy.
If Ye’s coin fails to meet market expectations, it could lead to another round of steep losses for those caught up in the hype.
Memecoins: Struggles at present
Currently, many memecoins are grappling with significant price corrections.
Dogecoin [DOGE] has fallen by 33.57%, while other tokens like Shiba Inu [SHIB], Pepe [PEPE], and Official Trump [TRUMP] have experienced losses of 36.46%, 50.76%, and 62.66%, respectively.
BONK has seen the steepest decline at 69.06%, signaling a downturn in speculative excitement.
Source: TradingView
This market correction suggests that the memecoin bubble may have burst, with investors now taking profits after the surge in late 2024.
Unlike previous cycles, institutional demand for memecoins has not materialized, leaving these assets vulnerable to broader market sentiment.
While Dogecoin has found some stability, many other memecoins continue to slide.
For these assets to rebound, they may need a fresh catalyst, such as major celebrity endorsements or listings on major exchanges, to reignite speculative interest.
