Hayden Adams, the creator of Uniswap, has made a move in the crypto world by burning nearly all of the HayCoin (HAY) supply, amounting to $650 billion.
This bold decision, executed on October 20, comes in response to the unexpected surge in the price and popularity of HAY, which had evolved from a test token introduced five years ago.
HAY, initially a test token, unexpectedly transformed into a meme coin, attracting substantial transaction volumes and speculation.
Adams himself was taken aback by this development, acknowledging the unpredictable and often peculiar nature of the crypto landscape.
However, the soaring value of HAY and the associated speculative fervor prompted Adams to take action.
In a bid to quell the speculative frenzy and dissociate himself from the meme coin mania, Adams decided to burn approximately $650 billion worth of HAY, representing 99.9% of the token’s circulating supply.
Token burning typically reduces the token’s availability, which can exert upward pressure on its price. However, Adams downplayed the price surges as “silly.”
The crypto community, particularly on platforms like X, formerly Twitter, reacted to this bold move. Some raised concerns about potential tax implications, estimating a substantial $128 billion tax liability due to the zero-cost basis for the disposed tokens. Others debated alternative approaches, including selling the tokens for charitable purposes.