Contents
Uniswap founder, Hayden Adams, has set the crypto world abuzz by burning 99% of the HayCoin (HAY) supply in a move aimed at quelling rampant price speculation.
A Brief History of HAY Token
Adams originally deployed the HAY token for testing five years ago, predating the launch of Uniswap, a decentralized protocol. He created a minuscule test liquidity pool, retaining over 99.9% of HAY tokens in his wallet. In recent weeks, the token had unexpectedly surged into the six-figure trading range.
Concerns About Speculation
Adams expressed his concerns regarding the escalating price speculation: “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. However, Crypto can be weird sometimes.”
Read More: Binance to Cease European Visa Debit Card Services
A Staggering $650 Billion Burn
The crypto community was left stunned as Adams revealed that approximately $650 billion worth of HAY tokens were obliterated. He emphasized his discomfort at owning nearly the entire supply and opted for the drastic measure. “Ultimately, I’m uncomfortable owning almost the entire supply (~99.99%) of a token that people are memeing and speculating on, so I decided to burn the full amount in my wallet (”valued” at an absurd ~$650b).”
The Impact on Uniswap Founder Burns HayCoin
Token burning permanently removes units from circulation, causing inflationary effects on their price by reducing the available supply. Thus, as of the latest data, the HAY token is trading at $2,392,640, representing a staggering 235% surge in the past 24 hours, according to CoinGecko.
Controversy and Questions
Adams’ bold move has sparked controversy and questions within the crypto community. Some raised concerns about the tax implications of the token burning: “Assuming a cost basis of $0, a ~$650 billion disposal gives rise to ~$128 billion long-term capital gains liability,” wrote a user. Thus, others suggested alternative approaches, such as selling the tokens and donating the proceeds.
In an unexpected turn of events, Hayden Adams’ decision to burn HAY tokens has triggered a ripple effect throughout the crypto landscape, underscoring the complexities and debates surrounding token management.
Do you need help in finding the best crypto exchange for your needs?
Click here: The Best Crypto Exchange Finder
Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
Follow Us on Facebook: Tradingcompass.io
