Key Allegations & Market Data:
- Liquidity Drain: On-chain analysis by Bubblemaps indicates that a wallet linked to the token’s deployer removed approximately $2.5 million to $3.4 million in USDC liquidity shortly after the price peaked.
- Price Crash: The sudden removal of liquidity triggered an 81% price collapse, leaving thousands of retail holders with significant losses.
- Partial Return: Blockchain data suggests about $1.5 million was later returned to the liquidity pool, but nearly $1 million remains unaccounted for.
Former New York City Mayor Eric Adams is facing intense scrutiny following the chaotic launch of his new cryptocurrency project, NYC Token ($NYC). Less than 24 hours after its debut, the token’s value collapsed amid allegations of a “rug pull” involving the removal of over $3 million in liquidity.
Adams, who left office on January 1, unveiled the project at a press event in Times Square, pitching the Solana-based token as a tool to fund non-profit initiatives combatting “anti-Americanism” and antisemitism. The token initially surged, reaching a market capitalization of nearly $600 million driven by retail speculation.
The incident has drawn sharp criticism from the crypto community and fraud investigators. While Adams promoted the token as a civic-minded venture, critics argue the tokenomics were highly centralized, with 70% of the supply allegedly held in a “reserve” excluded from circulation figures.
“This follows a classic rug pull pattern,” noted on-chain analyst ZachXBT. “High centralization, rapid price inflation, and sudden liquidity removal by insider wallets.”
Adams has not yet issued a formal response to the specific allegations regarding the liquidity withdrawal. This controversy adds to the legal challenges facing the former mayor, who had previously branded himself the “Bitcoin Mayor” during his tenure, advocating for New York to become a global crypto hub.