Analysts and traders accused the project of a possible rug pull due to the timing of the withdrawals.
Eric Adams, former mayor of New York City, is under fire after launching a new crypto token that sparked backlash, on-chain scrutiny, and accusations of a rug pull, as liquidity worth $3 million was reportedly withdrawn shortly after the token’s launch, alarming the trading community.
On Monday, Adams unveiled the NYC Token in Times Square and presented it as a crypto project tied to civic efforts. The token reached a $580 million market cap within hours, drawing attention from retail traders and observers. But on-chain data soon raised concerns over liquidity withdrawals connected to the token’s deployer.
Bubblemaps and other researchers reported the deployer’s wallet removed $2.5 million in USDC near the price peak. After the token dropped over 60%, $1.5 million was added back, but $900,000 remains missing. These movements led to accusations of a possible rug pull by market participants.
The token’s website states a total supply of 1 billion coins, with 70% allocated to a reserve. This reserve is reportedly not part of the circulating supply, raising questions about transparency. Adams did not disclose token ownership structure or co-founders at the launch.
During an interview with Fox News’ Maria Bartiromo, Adams attempted to defend the token’s use case and mission. However, his explanation centered on blockchain’s general utility, using Walmart as an example. “Walmart is using blockchain… it is transparent,” Adams said during the segment.
He said NYC Token funds would support efforts against antisemitism and anti-Americanism via an unnamed nonprofit. However, he did not provide any names, structure, or operational model for fund distribution. Viewers noted he referred to blockchain as “block change technology” twice during the same interview.
Critics have questioned the lack of clarity regarding the project’s governance and financial mechanisms. No whitepaper or audit documentation has been released to the public. Adams also did not answer direct questions about token allocation or revenue tracking.
The NYC Token launched this week is not affiliated with the earlier CityCoins project, which also issued a coin named New York City Coin. CityCoins launched its version in 2021 during Adams’ early tenure as mayor. That coin was eventually delisted by major exchanges in 2023 due to low liquidity.
The earlier CityCoins initiative operated independently of Adams but initially received his verbal support. However, it failed to gain traction and saw a steep decline in market activity. The new NYC Token shares no on-chain link with that earlier project.
Eric Adams, known for taking early paychecks in Bitcoin, gained the nickname “Bitcoin mayor” during his time in office. His crypto enthusiasm included statements about making New York the crypto capital of the world. That stance now faces public and media scrutiny after the token controversy.
At this time, Adams has not provided updated statements or clarifications following the liquidity concerns. The project website remains live but offers limited operational details. On-chain data continues to show active wallet movements tied to the token’s early trading.
