Former New York Metropolis Mayor Eric Adams is going through important backlash after the crash of his newly launched cryptocurrency, the NYC Token, shortly after its debut on Monday. The token initially soared to a market cap of $580 million however has since fallen sharply to roughly $133 million.
Eric Adams Beneath Fireplace
In a promotional video, Adams declared, “We’re about to vary the sport. This factor is about to take off like loopy.” Nevertheless, the joy was short-lived as proof surfaced suggesting that the steep decline in worth resulted from a big sell-off involving a person related to the NYC Token’s growth staff.
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Blockchain evaluation platform Bubblemaps flagged probably regarding exercise linked to the NYC Token. Notably, a pockets related to the token’s deployer withdrew round $2.5 million in liquidity when the token peaked.
Though about $1.5 million was returned after the token’s worth dropped by 60%, roughly $900,000 stays unreturned. This has led customers on social media platform X (previously Twitter) to accuse Adams of orchestrating a crypto rug pull.
Adams, who has been an outspoken proponent of cryptocurrency, said throughout a Monday occasion that a few of the funds generated by the NYC Token can be directed in the direction of nonprofits targeted on combating antisemitism and “anti-Americanism.” Moreover, he expressed intentions to make use of the proceeds to “train our youngsters about embracing blockchain know-how.”
The NYC Token’s official web site states there’s a complete provide of 1 billion tokens in circulation, and particulars reveal that 10 % of earnings are allotted to the staff’s actions, although the identities of these concerned weren’t disclosed.
NYC Token Crew Responds
In response to criticism, the NYC Token staff acknowledged the liquidity withdrawal, stating, “Given the overwhelming assist and demand for the token at launch, our companions needed to rebalance the liquidity.” They added, “We’re in it for the lengthy haul!”
Nevertheless, there stays uncertainty concerning the particulars surrounding the token’s launch, with a lately listed entity, C18 Digital, related to the mission. Delaware company data present that C18 Digital was integrated on December 30, 2025.
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Usually, when a cryptocurrency launches, builders create a liquidity pool utilizing numerous belongings, akin to Circle’s USDC or Solana (SOL), to permit customers to purchase and promote the brand new token. The NYC Token took a distinct method by establishing a one-sided liquidity pool comprised solely of the token itself.
As customers started buying the token, they injected liquidity into the pool utilizing USDC, which was adopted by the numerous withdrawal of $2.5 million. This tactic, described by analyst Vaiman, will be extra refined than direct token sell-offs.
Following the viral experiences of the alleged rug pull, a brand new account related to the NYC Token introduced that extra funds had been injected into the liquidity pool.
Featured picture from CNN, chart from TradingView.com