Hayden Adams, the founder of Uniswap, took a significant step on October 20 by removing 99% of Total HayCoin (HAY) quantity. This move was motivated by his growing concerns about the token’s widespread price speculation. In reaction to the recent rise in speculative trading activity, Adams released an official statement on X confirming the withdrawal of the majority of HAY tokens from circulation.
Hayden Adams introduced the HAY token for experimental uses five years ago, predating the creation of the decentralized Uniswap protocol. During that time, he created a small test liquidity pool with a minuscule fraction of the total HAY supply, keeping more than 99.9% of the tokens in his personal wallet. HAY recently seen spiking prices equivalent to memecoins, forcing Adams to ponder this unexpected change of affairs.
Throughout the years, a handful of individuals purchased it either as a joke or for its novelty. He was incredibly astonished to witness substantial transactions taking place recently, with people treating it akin to memecoins. The crypto world can indeed be quite bizarre at times.
Adams revealed that he purposefully destroyed $650 billion in HAY tokens. His motivation for taking this action originated from his dissatisfaction with the frivolous nature of price speculating. He was worried about owning nearly the entire supply of a token that was fast becoming the subject of memes and wild conjecture. He chose to “eliminate the entire sum in my wallet (which was allegedly worth an outrageous $650 billion),” in his own words.
HAY Token Burn Sparks Price Surge, Tax Debates
Token burning involves the permanent removal of tokens from circulation, a move that can have inflationary effects on their price by reducing the available supply. At the time of writing, the HAY token’s price had surged to $2,392,640, marking a remarkable 235% increase in just 24 hours, as reported by CoinGecko.
Adams’ decision to burn tokens raised questions and eyebrows on X. Beyond the immediate impact on HAY’s price, some users pondered the potential tax implications of token burning. One user noted that assuming a cost basis of $0, a disposal of approximately $650 billion could result in a long-term capital gains liability of around $128 billion.
Meanwhile, some suggested that Adams could have sold the tokens before burning them and donated the profits to a charitable cause, which could have averted the tax liabilities associated with token burning.
Patricia Exchange Announces Debt Restructuring and Token Conversion
In a related event, Fejiro Hanu, the CEO of Patricia Exchange, proposed a debt restructuring strategy including convertible notes. Patricia Tokens (PTK) were distributed to exchange customers, and Hanu confirmed that consumers can now convert their outstanding debt into Patricia shares. As the company prepares for an impending app relaunch, this project is a critical component of its fundraising and debt reorganization strategy.
Furthermore, Hanu assured customers that these shares would be managed by a trusted third party licensed by the Nigerian Securities and Exchange Commission (SEC) to ensure transparency in the process. However, not all customers were content with this move, and some were seen in a video circulating on X, demanding their owed funds.
Hanu Debunks Misleading Video, Assures Patricia App Revamp
In response to the video, Hanu clarified that the office shown in the video was an innovation hub set up in 2022 to provide free working spaces for developers and crypto enthusiasts. He emphasized that Patricia does not operate from that office, and the video was misleading.
Hanu also addressed the issue of customers who could not withdraw their funds, explaining that the Patricia app is currently in beta testing and will soon be relaunched. He mentioned that invites had been extended to customers to test the app before its public release, and some customers who participated in the testing process were already getting their Patricia Tokens (PUTX) redeemed.
This latest development follows the disclosure of a security breach by the company in May 2023, which resulted in fund losses. While Patricia claimed that customer funds remained unaffected, users have faced ongoing difficulties accessing their funds since April, leading to growing concerns within the community.
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