Ye's MemeCoin Launch Shakes Market Amidst Volatility

Kanye West, now known as Ye, is set 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.

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. 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.

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.

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. This market correction suggests that the memecoin bubble may have burst, with investors now taking profits after the surge in late 2024.