What’s the Fuss About and Is It Worth Your Money? – Crypto News – Crypto News
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What's the Fuss About and Is It Worth Your Money? What's the Fuss About and Is It Worth Your Money?

Cryptocurrency

What’s the Fuss About and Is It Worth Your Money? – Crypto News

Published

4 months ago

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Summary:

  • YZY Coin launched to a fairytale on Thursday but crashed almost as fast as speculation over its ownership dampened excitement.

The world woke up on Thursday to much hype around the coin, which is also known as $YZY Coin or “Yeezy Money,” and is built on the Solana blockchain.

What is YZY Coin?

YZY Coin is a meme token associated with Kanye West (Ye), a popular hip hop artist and entrepreneur. The token is part of a bigger “YZY Money” ecosystem that comprises the YZY token itself, Ye Pay (a service for making crypto payments), and the YZY Card, a debit card. The project’s website calls it a “financial system built on crypto rails,” and its goal is to make transactions easy within Ye’s brand world, which could include his Yeezy fashion line and other businesses.

Why the Hype?

Launched in the Solana ecosystem, YZY Coin was promoted as Kanye West’s escape from “censored platforms” via the use of cryptocurrency. The Solana blockchain is a popular choice for meme coins because it has fast transactions speeds and charges and minimal fees.

The coin went viral due to the millions of tokens that were available and the rumors that 70% of them were allocated for Kanye. The proposal alluded potential branded NFTs, Yeezy stuff that only certain people could buy. However, YZY Coin ran into trouble right away. Investors lost faith when they heard rumors of insider trading and a lack of transparency, which led many to dump their coins

Why Did YZY Token Rise?

The larger “Yeezy Money” strategy promotes the token as a way to pay for things in an on-chain economy, which proved a hit among Kanye’s supporters. Within minutes of West’s comment on the project, liquidity shot up, and the token temporarily reached values above $3 billion until it started falling under its own weight.

Why Did YZY Token Fall?

Concerns over liquidity management and reports of concentrated insider holdings quickly dampened excitement. According to analysts, insiders appeared to have benefited the most from the frenzy, and there was a concentration of over 90% of the supply in a small number of wallets.

On-chain analysis showed that some wallets withdrew millions of dollars soon after debut, with a single address making $2.9 million, indicating insider involvement. This has led to claims of a “pump-and-dump” scam, in which early holders (who are likely related to the project) hype the token to drive up prices before selling it.

What Next for YZY?

YZY is not like other cryptocurrencies that are focused on utility, like Bitcoin or Ethereum. Instead, it is mostly a meme coin whose value is based more on community hype, social media excitement, and cultural appeal. In short, if you’re thinking about it, think of it as high-risk speculation, not investing advice. Still, there’s a glimmer of optimism. If Kanye becomes personally involved, fans on forums think he might give the coin a lifeline.

This article was originally published on InvestingCube.com. Republishing without permission is prohibited.

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