Uniswap’s Hayden Adams has burnt 99% of HayCoin (HAY) due to concerns over price speculation, removing around $650 billion worth of tokens from circulation. This move has implications for HAY’s price and potential tax considerations.
Uniswap founder Hayden Adams recently took a significant step by burning 99% of the HayCoin (HAY) supply. This move, announced on X, was motivated by growing concerns about price speculation surrounding the token.
Five years ago, before the launch of Uniswap v1, I deployed a token called HayCoin to use for testing. This was back when gas was so cheap that mainnet could be used as as a testnet. After the launch of v1, I created a small test liquidity pool with a tiny fraction of the total…
— hayden.eth 🦄 (@haydenzadams) October 20, 2023
Hayden initially created the HAY token for testing purposes five years ago, preceding Uniswap’s decentralized protocol launch. However, a recent surge in trading activity treated it more like a memecoin, with its price soaring into the six-figure range.
Uncomfortable with owning nearly the entire supply of a token subject to memeing and speculation, Hayden decided to burn his wallet’s entire HAY holdings, amounting to approximately $650 billion.
Token burning, a process where tokens are permanently removed from circulation, can have inflationary effects on their price by reducing available units.
Currently, the HAY token is trading at $2,392,640, marking a remarkable 235% increase in the past 24 hours, as per CoinGecko. This move has not only impacted HAY’s price but has also raised questions about potential tax implications, as some argue it could be considered a taxable event.