Uniswap Founder Burns 99% of HayCoin Supply
Uniswap founder Hayden Adams has burned 99% of the HayCoin (HAY) supply due to concerns about price speculation. Adams originally deployed the HAY token for testing purposes five years ago, before the launch of Uniswap. He kept over 99.9% of the tokens in his wallet and was surprised to see people treating it like a memecoin and trading significant dollar amounts. Adams decided to burn the entire supply, valued at around $650 billion, stating that he is uncomfortable owning almost the entire supply of a token that is being memed and speculated on.
Token Burning and Price Impact
When tokens are burned, they are permanently removed from circulation, which can create inflationary effects on their price by decreasing the available units. Currently, the HAY token is being traded at $2,392,640, showing an increase of over 235% in the past 24 hours according to CoinGecko.
Controversy and Tax Implications
Adams’ decision to burn the tokens raised concerns and controversy. Some users pointed out that token burning could be considered a taxable event, potentially resulting in a significant long-term capital gains liability. Others suggested that Adams could have sold the tokens before burning them and donated the profits.
Hot Take: Uniswap Founder Burns HayCoin Supply
Uniswap founder Hayden Adams has taken an unexpected step by burning 99% of the HayCoin supply. Concerned about price speculation and uncomfortable with owning almost the entire supply of a token associated with memes and speculation, Adams decided to permanently remove the tokens from circulation. This move has sparked debate regarding its impact on token price and potential tax implications. While some users question the decision, the HAY token has experienced a significant surge in value in the past 24 hours. Adams’ action highlights the unpredictable nature of the crypto market and its potential for unusual and unexpected events.
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