Uniswap founder Hayden Adams burned 99% of HayCoin (HAY) supply due to concerns about price speculation and it being treated as a meme coin.
- Uniswap founder Hayden Adams burns 99% of HayCoin (HAY) supply.
- HAY token’s price surges from $657,000 to $4 million in three hours.
- Adams cites concerns over the token’s meme status and speculative trading.
- Community debates Adams’ decision and potential tax implications.
Uniswap’s creator, Hayden Adams, sent shockwaves through the crypto community by burning over 99% of the HayCoin (HAY) token supply on August 20th, a move he announced on social media platform X. This bold decision stemmed from his apprehension regarding recent price speculation surrounding the token, coupled with its unexpected evolution into a meme coin.
Founder Burning Coins Supply
HayCoin, initially deployed for testing purposes nearly five years ago, played a minor role in Uniswap’s early development. However, it had recently experienced an astonishing surge in value, trading in the six-figure range. This unexpected turn of events prompted Adams to take action.
In his own words, “Five years ago, before the launch of Uniswap v1, I deployed a token called HayCoin to use for testing. Over the years, a few people have noticed it and bought it as a joke/for the novelty of it. Was extremely surprised to see people buying and selling significant dollar amounts this past week, treating it like a memecoin.”
Adams further revealed that he was uncomfortable holding nearly the entire supply of HAY, valued at approximately $650 billion. He distanced himself from the token, stating, “I will have no future involvement, have burned all the HAY in my wallet, and think speculating on it is silly.”
The aftermath of the burn was astonishing as the HayCoin price surged exponentially, rising from $657,000 to an impressive $4 million within three hours, marking a 300% increase. Currently, the token is trading at $3.1 million. Token burning typically results in a price surge as it reduces the available units in circulation.
Uniswap Founder Burns 99% Of HayCoin (HAY) Supply, Value Soarshttps://t.co/uvRPItqSOK
— ❇️ IamOdyla (@IamOdyla) October 23, 2023
However, Adams’ decision ignited debate within the crypto community on X. Some accused him of profiteering from the token before the burn, to which Adams clarified that he had not sold any tokens except for those used in test transactions years ago. Additionally, it was noted that a single wallet still holds approximately 54% of the remaining HAY tokens.
Moreover, some community members questioned the tax implications of the token burning, suggesting it could be considered a taxable event. Assuming a cost basis of $0, a disposal of approximately $650 billion could incur a long-term capital gains liability of about $128 billion.
Hayden Adams’ surprising move to burn the majority of HayCoin’s supply highlights the unpredictable nature of the crypto market. While his decision led to a significant price surge, it also raised questions within the community about the ethics and tax implications of such actions. As the crypto world continues to evolve, it remains crucial for participants to consider the broader implications of their decisions on both the market and the community.