Blockchain analysts say a project-linked wallet pulled millions from the trading pool, leaving nearly $1 million unaccounted for
A crypto token unveiled this week by former New York City mayor Eric Adams lost more than 80% of its value within hours of launch, triggering questions over unusual money movements linked to the project.
Market data show the “NYC” token surged briefly after trading began before collapsing sharply, wiping out much of its early valuation. As the price was plunging, blockchain analysts began flagging transactions suggesting that large sums of money were being pulled out of the system that supports trading in the coin.
According to Bubblemaps, an independent platform that monitors blockchain activity, a digital wallet connected to the creator of the token allegedly withdrew millions of dollars from the fund that allows investors to buy and sell the coin. That fund — often described as the trading pool — acts as the reserve that stabilizes prices and makes transactions possible.
Records examined by Bubblemaps indicate that shortly after trading opened, about $2.4 million in dollar-pegged cryptocurrency was removed from the pool. Only part of that amount, roughly $1.5 million, was later returned. Analysts say nearly $1 million remains unaccounted for.
In practical terms, as thousands of buyers were entering the market, a wallet linked to the project appears to have extracted a large share of the available cash, shrinking the pool that supports trading and amplifying the violent price swings.
“There has been no public explanation for these liquidity movements,” Bubblemaps said, adding that the pattern resembles previous high-profile token launches in which insiders were accused of pulling money out early, just before or during major sell-offs.
Adams announced the launch of the NYC token Monday at a Times Square news conference, describing it as a project aimed at funding initiatives against “antisemitism and anti-Americanism” and supporting educational programs tied to blockchain technology.
In the first hours of trading, the token’s overall market value briefly surged into the hundreds of millions of dollars. It then rapidly unraveled. Price data show the token falling from around 58 cents to roughly 11 cents in a matter of hours.
The news outlet Decrypt said it contacted Adams seeking comment on the transactions but had not received a response.
The episode comes amid growing scrutiny of cryptocurrencies promoted by political figures. Last year’s collapse of the LIBRA token, backed by Argentine President Javier Milei, led to fraud lawsuits and investigations after early trading activity revealed heavy manipulation and steep investor losses.
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