Eric Adams Rejects “Rug Pull” Claims Tied to NYC Token Despite Big Losses

Former New York City Mayor Eric Adams has rejected allegations that his newly launched meme coin, NYC Token, was linked to suspicious liquidity withdrawals that left investors facing heavy losses.

In a statement posted Tuesday to Adams’ X account, spokesperson Todd Shapiro said reports suggesting Adams moved money out of the NYC Token were “false and unsupported by any evidence.”

The statement added that Adams neither touched investor funds nor profited from the token’s launch, insisting that “no funds were removed from the NYC Token.”

NYC Token Team Blames Early Volatility for Post-Launch Price Drop

Shapiro characterized the token’s sharp price swings as a familiar feature of early-stage crypto projects.

“Like many newly launched digital assets, the NYC Token experienced market volatility,” he said, framing the turbulence as a market-driven event rather than a coordinated withdrawal.

The response followed heightened scrutiny of onchain activity surrounding NYC Token, which suffered a steep drawdown shortly after launch.

The project itself acknowledged liquidity adjustments, saying it had to “rebalance” amid strong demand.

In a post on X, the team said its partners temporarily removed funds for time-weighted average price execution and later added additional capital back into the liquidity pool.

Those explanations have done little to calm critics. Independent analysts flagged transactions that appeared to drain liquidity near peak prices, triggering concerns among traders.

One of the earliest warnings came from Rune Crypto, which alleged that roughly $3.4 million in liquidity was withdrawn shortly after launch and accused the project of operating like a rug pull.

Onchain visualization platform Bubblemaps also highlighted unusual patterns.

According to its analysis, a wallet connected to the token deployer removed around $2.5 million in USDC near the market top and later added back approximately $1.5 million after the token’s price had fallen more than 60%.

Bubblemaps: 60% of NYC Token Traders Lost Money After Launch

Bubblemaps further detailed the scope of trader losses. Of roughly 4,300 participants, an estimated 60% ended the token’s first hours in the red.

Most losses were under $1,000, but about 200 traders lost between $1,000 and $10,000. A smaller group suffered losses in the tens of thousands, while at least fifteen traders lost more than $100,000.

Adams’ camp has emphasized that the NYC Token was pitched as a vehicle to support nonprofit initiatives and community education, not as a speculative investment.

Still, the episode has fueled transparency concerns, particularly around governance and liquidity management.

The project’s website states that the token is deployed on Solana with a total supply of one billion tokens, 70% of which are allocated to a reserve excluded from circulating supply.

While the team has cited unnamed partners in its liquidity actions, it has yet to publish a detailed breakdown, leaving questions about oversight and accountability unresolved.