In an unforeseen development, Hayden Adams, the mind behind Uniswap, wiped out 99% of the HayCoin (HAY) reserves on October 20. This step, driven by worries about price manipulation, has made waves in the cryptocurrency sphere.
Adams initially introduced HAY as an experimental tool before Uniswap was launched. He held onto 99.9% of HAY tokens, while a small portion was used for testing. Lately, HAY started to trade like a memecoin, with its value soaring astronomically.
Via X (previously Twitter), Adams disclosed the obliteration of HAY tokens worth $650 billion. He brushed off the price speculation as “nonsensical”, and voiced his reluctance to have his persona associated with the token.
When a token is burned, it disappears from circulation, which could potentially inflate its price due to decreased supply. As it stands, HAY is trading at an astounding $2,392,640 indicating a 235% increase in less than a day, as per CoinGecko data.
The move by Adams initiated discussions on X, with users hinting that the burn could be considered a taxable event. Some suggested an alternative route: selling the tokens prior to burning and then donating the proceeds. Regardless of the differing viewpoints, the crypto community is keenly observing the ripple effects of this daring act.
