Rapper Lil Yachty Announces Ethereum-Based Token 'YachtyCoin': What You Need To Know

Rapper Lil Yachty has entered the cryptocurrency space by announcing his own "YachtyCoin," a token that his fans can purchase to "have a stake in his career."

Soon to debut on the Switzerland-based Fyooz platform, YachtyCoin can be sold to the rapper's fans like a currency that can be exchanged for goods and services. These kinds of cryptocurrencies are called "social coins" or "celebrity coins" as the tokens derive their value from the power and influence of the celebrity or person under whose name they are issued.

Lil Yachty first announced YachtyCoin last month. "If you want to buy access to me, YachtyCoin is coming soon only on the Fyooz App," he told his 5.2 million followers while retweeting a post from Fyooz.

Some of his followers on Twitter replied that they do not understand what the rapper posted. "I don't understand but I'll still support you," said one of his followers.

Fyooz is a platform that helps artists to issue their own tokens. The company said the token price will go up when the demand for an artist increases. With YachtyCoin still not having an official launch date, it is difficult to estimate how many will invest in it. Lil Yachty has 20 million followers across social media platforms, which includes more than 5 million fans on Tiktok.

Music fans seeking digital alternatives could start adopting the social coins. "Ownership of a token can effectively give his millions of loyal fans a stake in his career, as well as privileges that they wouldn’t otherwise receive," Kori Hale, CEO of CultureBanx, wrote in an article on Forbes.

Many celebrities have lend their name to cryptocurrency projects, with coins being issued under their names. This year, five-time Grammy nominee Akon announced his plans for a cryptocurrency city called "Akon City" in Senegal, where all transactions will be made in Akoins.