The founder of Uniswap burned 650 billion dollars of HayCoin! On October 20, Uniswap founder Hayden Adams made a bold and surprising move and burned 99% of the HayCoin (HAY) supply. The drastic move was fueled by Adams’ concerns about increased price speculation surrounding the token. The announcement was made via X (formerly Twitter) and sent shockwaves throughout the cryptocurrency community.
Adams originally deployed the HAY token for testing five years ago, a period before the Uniswap decentralized protocol was launched. At the time, gasoline prices were significantly lower, allowing the main grid to be used as a pilot grid. He created a small test liquidity pool with a tiny fraction of the total offering while holding more than 99.9% of HAY tokens in his wallet. However, in recent weeks, HAY has started to flip like a meme coin, with prices reaching the six-figure range.
In his announcement, Adams marveled at seeing people buy and sell significant amounts of HAY, treating it as a May coin. He acknowledged the weirdness of the cryptocurrency space, saying, “Crypto can be weird sometimes.”
Adams’ decision to burn the token took approximately $650 billion of HAY out of circulation. He calls the price speculation surrounding the token “stupid” and notes that he is upset that it has almost 99.99% of the total supply.
“Ultimately, I’m sick of having almost the entire sale (99.9%) of the token that people are modeling and speculating on, so I’ve decided to burn the entire amount in my wallet (“Precious “) with an absurd 650 billion dollars).
Token burning is a practice in the cryptocurrency world that involves the permanent removal of tokens from circulation. However, this action can come at the price of the token, as it reduces the available units. According to CoinGecko, as of this writing, the HAY token is paying $2,392,640. which represented a significant increase of more than 235% in the last 24 hours.
This move by Adams did not go unnoticed in the crypto community. While some of the decisions are to combat rampant speculation, others raise issues. One notable concern was whether token burning could be considered a taxable event. Regarding the astronomical value of this disposal, one of the users commented: “Assuming a cost of 0 dollars, 650 billion dollars thrown away becomes about 128 billion dollars of long-term capital gain debt.”
Another suggestion was that Adams could sell the tokens before they burn and donate the proceeds. This option can potentially support charitable causes or initiatives.
In the end, Hayden Adams’ decision to burn the majority of Kevin’s offers was an important move. In the world of the digital world, he was doing everything. These raise questions about the ethics of crypto ownership and the responsibility of founders to manage their creations as they make their living in speculative markets. Time will tell if other cryptocurrency developers follow Adams’ example. Or they make it an event to the individual in an ever-living world with digital features.