Former New York City Mayor Eric Adams is facing significant backlash after his newly launched cryptocurrency, NYC Token, crashed shortly after its debut on Monday. The token initially jumped to a market capitalization of $580 million, but has since plummeted to approximately $133 million.
Eric Adams under fire
In a promotional video, Adams stated, “We’re about to change the game. This thing is going to take off like crazy.” However, the excitement was short-lived as evidence emerged suggesting that the sharp drop in value was the result of a significant sell-off involving a user associated with the NYC Token development team.
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Bubblemaps block analysis platform marked with a flag potentially worrisome activities associated with the NYC token. Namely, the wallet associated with the token developer withdrew about $2.5 million in liquidity when the token peaked.
Although about $1.5 million was returned after the value of the token dropped by 60%, approximately $900,000 remains unreturned. This led users on the social media platform X (formerly Twitter) to accuse Adams of orchestrating the crypto rug pulling.
Adams, who has been an outspoken proponent of cryptocurrency, stated during Monday’s event that a portion of the funds generated by the NYC Token will be directed toward non-profit organizations focused on combating anti-Semitism and “anti-Americanism.” In addition, he expressed his intentions to use the proceeds to “teach our children to embrace blockchain technology.”
NYC Token’s official website states that there is a total supply of one billion tokens in circulation, with details revealing that 10 percent of profits are allocated to the team’s activities, although the identities of those involved have not been disclosed.
The NYC Token team responds
IN answer to the criticism, the NYC token team acknowledged the liquidity pull, saying, “Given the overwhelming support and demand for the token at launch, our partners had to rebalance liquidity.” They added: “We’re in it for the long haul!”
However, uncertainty remains over the details of the token’s launch, with a recently listed entity, C18 Digital, linked to the project. Delaware corporation records show that C18 Digital was incorporated on December 30, 2025.
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Typically, when a cryptocurrency is launched, 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. NYC token has taken a different approach by establishing a unilateral liquidity pool consisting solely of the token itself.
As users started buying the token, they injected liquidity into the pool using USDC, which was followed by a significant withdrawal of $2.5 million. This tactic, described by analyst Vaiman, can be more subtle than an outright token sale.
Following viral reports of the alleged rug-pulling, a new account associated with the NYC token has announced that additional funds have been injected into the liquidity pool.
Featured image from CNN, chart from TradingView.com
