A spokesperson for former New York City Mayor Eric Adams has denied claims that he moved funds or profited from the NYC Token, which launched on Monday and dropped 80% within its first hour.
“To be absolutely clear: Eric Adams did not move investor funds. He did not profit from the launch of the NYC Token. No funds were removed from the NYC Token,” said Todd Shapiro, Adams’ spokesperson, in a statement shared on X Wednesday.
Speculation of a potential rug pull emerged after the token’s steep initial decline, with some crypto analysts claiming Adams’ team had allegedly pulled liquidity, defrauding investors of over $3.4 million.
Shapiro called the accusations “false and unsupported by evidence,” adding, “At no point was his involvement intended for personal or financial gain.” He attributed the token’s sharp drop to “market volatility.”
NYC Token Team Offers Different Explanation Amid Controversy
Todd Shapiro’s claim that “no funds were removed from the NYC Token” appears to contradict a prior statement from the NYC Token X account, which said the team had “rebalanced the liquidity” in response to strong demand at launch. The account also noted that additional funds were added to the token’s liquidity pool.
In an interview with FOX Business, Adams said that proceeds from the NYC Token are intended to fund non-profits promoting awareness of antisemitism and anti-Americanism through educational programs. The funds would also support scholarships for students in underserved NYC communities, the former crypto-friendly mayor added.
Shapiro emphasized that the controversial token launch has not changed Adams’ commitment to these initiatives.
“Mr. Adams remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.”
NYC Token Lingers Near Launch Collapse Levels
Data from DEXScreener shows the Solana-based NYC Token is trading around $0.133, little changed since its steep drop from $0.475 shortly after launch.
The token has lost more than $400 million in market value since reaching its initial highs.
