DanceJam will provide users with the ability to share and watch dance music videos.
If DanceJam succeeds, it would be a big help to getting MC Hammer out of the financial problems he has had. MC Hammer went bankrupt in 1996 owing almost $14m (£7m).
Although in his short but successful career as a pop star, MC Hammer was estimated to have earned $33m, he got through his riches very fast by buying private jets, fancy cars and a mansion in California.
Later on, after he was no longer a success with his singing, MC Hammer made a bit of a comeback as a preacher and TV presenter.
DanceJam will hope to raise its money from advertisers, but media experts think MC Hammer will have an uphill struggle attracting the users of YouTube.
