Hayden Adams, the founder of Uniswap, recently burned around 99% of the supply of HayCoin on the 20th of October, according to an announcement made on X. A large portion of the tokens have been removed completely from circulation due to the concerns raised by the founder about the speculation of price over the last few days.
Adams had deployed this HAY token for testing about five years ago- before Uniswap was launched as a decentralized protocol. For this purpose, he had also created a small test liquidity pool along with a tiny fraction of the total supply and had also kept over 99.9% of the HAY tokens in the wallet. Incidentally, just a few weeks ago, the token had been trading like a meme coin in the entire six-figure range.
Hayden Adams Has Ended Up Burning Uniswap Tokens
According to Hayden Adams’ post, close to $650 billion worth of HAY tokens have already been burned. The founder of Uniswap went on to dub the price speculation as entirely silly- where Hayden Adams further noted that he did not want his profile picture to be, in any form, associated with this token. For those wondering, when a token is burned, it is removed from circulation entirely. But it also creates some form of an inflationary effect on the price since it actually ends up decreasing the amount of units available. Currently, the HAY token seems to be trading at $2,392,640, up by over 235% in the last 24 hours. This move by Adams has raised quite a few eyebrows on the social media platform X.
Users have gone on to point out that, apart from the impact made by the price of HAY, the burning of the tokens could be considered to be a taxable event. One user wrote that if one were to assume a cost basis of $0, a $650 billion disposal would give rise to the long-term capital gains liability.
