HayCoin

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On October 20, Hayden Adams, the founder of the prominent decentralized exchange Uniswap, made a public <a href="https://twitter.com/haydenzadams/status/1715440623480652025?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1715440623480652025%7Ctwgr%5E0f0da97cd0787edb3faf570685a64ad2df413f1e%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Funiswap-hayden-adams-burns-650b-haycoin-speculation" rel="noopener noreferrer nofollow">announcement</a> on X, revealing that he had burned a staggering 99% of the HayCoin (HAY) supply due to apprehensions about price speculation.
<h2 id="span-style-font-weight-400-uniswap-founder-introduced-hay-for-testing-purposes-span">Uniswap Founder Introduced HAY for Testing Purposes</h2>
Notably, five years ago, Hayden Adams introduced the HAY token for testing purposes, predating the launch of the decentralized Uniswap protocol. He established a small-scale test liquidity pool using a minute portion of the total token supply, reserving over 99.9% of the HAY tokens in his wallet. Notably, only a few weeks ago, the token was experiencing a surge in trading activity, resembling meme coins and reaching six-figure price levels.
<h3 id="span-style-font-weight-400-treating-hay-like-a-memecoin-span">Treating HAY Like a Memecoin</h3>
He states: Was extremely surprised to see people buying and selling significant dollar amounts this past week, treating it like a memecoin. Crypto can be weird sometimes.”
He added: “Ultimately, I’m uncomfortable owning almost the entire supply (~99.99%) of a token that people are memeing and speculating on, so I decided to burn the full amount in my wallet (”valued” at an absurd ~$650b).
<h2 id="span-style-font-weight-400-attention-and-concerns-span">Attention and Concerns</h2>
Adams’ decision on X garnered attention and raised concerns. Apart from its effects on HAY’s price, users highlighted that the token burning might potentially be viewed as a taxable event.
A crypto user stated: “Assuming a cost basis of $0, a ~$650 billion disposal gives rise to ~$128 billion long-term capital gains liability.”
<h3 id="span-style-font-weight-400-uniswap-founder-sold-hay-prior-to-burn-span">Uniswap Founder Sold HAY Prior to Burn?</h3>
Some individuals proposed an alternative approach, suggesting that the Uniswap founder could have sold the tokens prior to their destruction and then contributed the resulting profits to a charitable cause.
In the previous month, <a href="https://thecoinrise.com/uniswap-lays-off-developer-for-alleged-memecoin-rugpull/" rel="noopener noreferrer nofollow">Adams made a statement regarding the departure</a> of a developer widely recognized as AzFlin within the crypto sphere. The reason for this separation was explicitly stated as a misalignment with <a href="https://thecoinrise.com/defining-the-future-of-defi-a-battle-between-aave-uniswap-tradecurve/" rel="noopener noreferrer nofollow">the decentralized exchange</a>‘s principles. This decision was precipitated by a controversy in which Uniswap found itself entangled.
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/uniswap-founder-burns-99-of-haycoin-supply-details/">Uniswap Founder Burns 99% of HayCoin Supply, Details</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Uniswap Founder Burns 99% of HayCoin Supply, Details

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