The former mayor of NYC, Eric Adams, faces scrutiny after his new cryptocurrency token crashed soon after the launch under suspicious circumstances on Monday. The token was a hit with a $580 million market capitalization minutes before plummeting 81% to around $130 million.
The ‘NYC Token’ Scrutiny
Adams’s ‘NYC token’ was a Solana-based memecoin wearing a Fendi scarf and baseball cap picturing the NYC ticker symbol. Adams said that the coin would fight ‘antisemitism and anti-Americanism’ while educating children about blockchain technology. The token was unveiled at the Times Square press event on January 12, pitching it as a crypto project aimed at a civic cause. The token’s initial bull run indicated the massive demand from retail traders and automated bots. However, within hours, on-chain data showcased a large liquidity movement that raised questions about the structure and management of the token.
Adams, during his time as a Mayor, was a frequent promoter of cryptocurrencies. He consistently expressed his desire to make New York the crypto capital of the world. This led to many leading crypto advocates addressing him as the ‘Bitcoin mayor’. He also said that as a president, he would convert his first paycheck into Bitcoin and Ether.
Adams Triggered Response
The analytics from Bubblemaps’ post on X showcased a wallet linked to the token’s deployer removing roughly $2.5 million in USDC liquidity at the time of the market’s peak. Moreover, after the token’s price dropped to more than 60%, about $1.5 million was added back. This move triggered accusations regarding a possible rug pull.
“3/ Wallet 9Ty4M, connected to the $NYC deployer, created one-sided LP on Meteora
This wallet then:
- Removed ~$2.5M USDC at the peak
- Added back ~$1.5M USDC after a -60% drop.”
Adams responded to the accusation through an emailed statement, “After the launch of NYC Token, there was a lot of demand. Our market maker made adjustments in an attempt to keep trading running smoothly, and as part of this process, moved liquidity.” He also added that, “The team has not sold any tokens and is subject to lockups and transfer restrictions. We are focused on being transparent and building for the long term.”
Subsequent Rug Pulls and Volatility
The volatility in price has become a routine for memecoins in recent years, a possible way for speculators to walk away with quick profits. While the NYC token dropped its value, the memecoin associated with President Donald Trump had a market value of more than $70 billion before collapsing to 90% of its value. The NYC token team reacted to the controversy and stated that “Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity,” also added that “We’re in it for the long haul!”
The ‘NYC token’ episode has occurred amid the growing scrutiny of politician-backed cryptocurrencies and memecoins. Nicholas Vaiman, CEO of Bubblemaps, said that their team has analyzed the liquidity removal and found it similar to that of the Libra attack in 2025. These consequent flips have certainly dipped investors’ reliance and trust in celebrity-backed crypto tokens.
