YZY Meme Coin Risk Alert: Hidden Dangers Behind the Celebrity Token

8/27/2025, 5:56:45 AM
Beginner
Quick Reads
YZY Meme Coin is a cryptocurrency created by Kanye West, integrating Ye Pay and the YZY Card. The article analyzes token allocation, assesses market volatility, and identifies associated risks, providing valuable insights for investors.

YZY Meme Coin Overview

In August 2025, Kanye West officially launched YZY Meme Coin (YZY) and introduced the YZY MONEY payment platform. Following the announcement, YZY’s market capitalization briefly soared to $3 billion, but adjusted to approximately $560 million by August 26, 2025. This highlights a rapid decline in market enthusiasm and significant price volatility.

Tokenomics and Lockup Mechanisms

Official data shows the following YZY allocation:

  • Public Offering: 20%
  • Liquidity Pool: 10%
  • Yeezy Investments LLC: 30%, locked for 3 months, then linearly vested over 24 months
  • Team: 20%, locked for 6 months, then linearly vested over 24 months
  • Ecosystem Development Fund: 20%, locked for 12 months, then linearly vested over 24 months

A high proportion of tokens (about 70%) are allocated internally, meaning public investors hold a relatively small share in the short term. This concentration may expose the market to risks of price manipulation and centralization.

Ye Pay and YZY Card Features

Ye Pay offers low-fee payment processing, enabling merchants to accept both credit card and crypto payments. The official store, yeezy.com, already supports crypto transactions and will support direct YZY payments in the future.

The YZY Card is a non-custodial debit card that allows users to spend YZY and USDC at millions of merchants worldwide that accept these cryptocurrencies. Users can spend cryptocurrencies directly, without needing to manually convert to fiat currency. This streamlines decentralized payments.

Market Performance and Price Volatility


Chart: https://www.gate.com/trade/YZY_USDT

Since launch, YZY’s market capitalization has shown substantial volatility, initially peaking at $3 billion before dropping to around $560 million as of August 27, 2025. This swift decline underscores the short-lived celebrity-driven hype and the heightened price risk for investors.

Internal Holdings and Risk Factors

Approximately 94% of YZY tokens are held by insiders, with 87% concentrated in multi-signature wallet addresses. Some wallet holders acquired tokens early and sold them at peak prices. This increases the risk of market manipulation and investment uncertainty.

Key Factors for Investors

  1. Celebrity-driven hype can trigger sharp short-term price swings.
  2. High internal token allocations restrict market liquidity and make prices vulnerable to volatility driven by large holders’ actions.
  3. The success of payment application rollouts will define long-term value.

Conclusion

YZY Meme Coin combines celebrity influence, payment innovation, and decentralization. However, investors should closely monitor token concentration and extreme price volatility. It is essential to assess market momentum rationally against practical utility. Investors are advised to exercise caution when making investment decisions.

Author: Max
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.

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