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Former New York City Mayor Eric Adams is facing significant 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 but has since fallen sharply to approximately $133 million.
In a promotional video, Adams declared, “We’re about to change the game. This thing is about to take off like crazy.” However, the excitement was short-lived as evidence surfaced suggesting that the steep decline in value resulted from a significant sell-off involving a user connected to the NYC Token’s development team.
Blockchain analysis platform Bubblemaps flagged potentially concerning activity linked to the NYC Token. Notably, a wallet associated with the token’s deployer withdrew around $2.5 million in liquidity when the token peaked.
Although about $1.5 million was returned after the token’s value dropped by 60%, approximately $900,000 remains unreturned. This has led users on social media platform X (formerly Twitter) to accuse Adams of orchestrating a crypto rug pull.
Adams, who has been an outspoken proponent of cryptocurrency, stated during a Monday event that some of the funds generated by the NYC Token would be directed towards nonprofits focused on combating antisemitism and “anti-Americanism.” Additionally, he expressed intentions to use the proceeds to “teach our children about embracing blockchain technology.”
The NYC Token’s official website states there is a total supply of one billion tokens in circulation, and details reveal that 10 percent of profits are allocated to the team’s activities, though the identities of those involved were not disclosed.
In response to criticism, the NYC Token team acknowledged the liquidity withdrawal, stating, “Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity.” They added, “We’re in it for the long haul!”
However, there remains uncertainty about the details surrounding the token’s launch, with a recently listed entity, C18 Digital, associated with the project. Delaware corporation records show that C18 Digital was incorporated on December 30, 2025.
Typically, when a cryptocurrency launches, developers create a liquidity pool using various assets, such as Circle’s USDC or Solana (SOL), to allow users to buy and sell the new token. The NYC Token took a different approach by establishing a one-sided liquidity pool comprised solely of the token itself.
As users began purchasing the token, they injected liquidity into the pool using USDC, which was followed by the significant withdrawal of $2.5 million. This tactic, described by analyst Vaiman, can be more subtle than direct token sell-offs.
Following the viral reports of the alleged rug pull, a new account associated with the NYC Token announced that additional funds had been injected into the liquidity pool.
Featured image from CNN, chart from TradingView.com
