The joke cryptocurrency token HAY, created years ago by Uniswap founder Hayden Adams, has seen its price skyrocket over 60% in the past day.
HAY was originally launched by Adams in 2018, before the creation of the popular decentralized exchange Uniswap. Although it started as a joke meme token, a small community formed around HAY over the years.
Yesterday, Adams made the surprise move to burn 99.99% of the total supply of HAY, leaving only 56 tokens in circulation. Shortly after this massive burn, some crypto enthusiasts added liquidity to HAY and drove up the price from around $500,000 per token to over $4 million per token – representing a massive single-day increase of over 60%.
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With the huge reduction in circulating supply coupled with new liquidity, the price of HAY surged as traders entered “degen mode” and tried to get their hands on the suddenly ultra-rare tokens. HAY is currently trading at around $4 million on Uniswap, giving it a fully diluted market cap of around $112 million.
While HAY has no intrinsic utility or value, its parabolic rise demonstrates the power of hype, FOMO, and limited supply economics in the crypto world. The unprecedented price movement of this previously obscure meme token has certainly caught the attention of the crypto community. However, analysts warn that the pump is highly speculative and that HAY prices could crash rapidly.
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