Former NYC Mayor Eric Adams Faces Rug Pull Claims After NYC Token Crashes 60%

TLDR

• Former NYC Mayor Eric Adams promoted NYC Token at a Times Square press event on Monday, with the token briefly hitting a $580 million market cap
• On-chain data shows a wallet linked to the token deployer removed $2.5 million in USDC liquidity near the market peak
• About $1.5 million was added back after the price dropped 60%, leaving roughly $900,000 unreturned
• The token allocates 70% of its 1 billion supply to a reserve excluded from circulation, with proceeds meant for an unnamed nonprofit
• Adams did not reveal co-founder identities or provide details on fund management during the launch

Former New York City Mayor Eric Adams announced a new cryptocurrency token on Monday that quickly drew accusations of a rug pull. The NYC Token launch has sparked concern among crypto traders after on-chain data revealed suspicious liquidity movements.

Adams unveiled the NYC Token at a Times Square press conference. He described the project as a crypto initiative tied to civic causes. The token’s value climbed rapidly after launch, reaching a market cap of $580 million within hours.

The surge attracted attention from retail traders and market observers. However, the excitement was short-lived. On-chain analytics soon revealed troubling patterns in the token’s liquidity management.

Blockchain tracking firm Bubblemaps identified a wallet connected to the token’s deployer. This wallet removed approximately $2.5 million in USDC liquidity near the token’s peak price. The timing of this withdrawal raised immediate red flags in the crypto community.

After the token’s price fell more than 60%, about $1.5 million was returned to the liquidity pool. This left roughly $900,000 in USDC that was not returned to the pool. Crypto analysts on social media platforms quickly labeled the incident a possible rug pull.

A rug pull occurs when developers or insiders remove liquidity from a token. This leaves other traders unable to sell their holdings without taking major losses. The practice is considered fraudulent in the crypto community.

Token Structure and Stated Purpose

The NYC Token website lists a total supply of 1 billion coins. The project allocates 70% of this supply to what it calls a “NYC Token Reserve.” This reserve is excluded from the circulating supply available to traders.

Adams stated the token would fund efforts to combat antisemitism and what he called “anti-Americanism.” He said proceeds would go to an unnamed nonprofit organization. Adams did not reveal the identities of any co-founders or team members at the launch event.

He also provided no details about how funds would be managed or distributed. During an interview with Fox’s Maria Bartiromo, Adams gave unclear answers about the token’s use case. He compared the project to Walmart’s use of blockchain for supply chain tracking.

Adams’ Crypto Background

Adams gained the nickname “Bitcoin mayor” during his time leading New York City. He frequently promoted cryptocurrency and expressed his goal to make New York the crypto capital of the world. Adams received his first three paychecks as mayor in bitcoin through Coinbase.

He previously supported other blockchain projects including the original NYC Coin launched by CityCoins. That earlier project was delisted by major exchanges in 2023 due to low liquidity. Adams also backed a concept called BitBond, which would have let investors earn returns tied to Bitcoin appreciation.

Adams left office on January 1, 2026. He was replaced by Zohran Mamdani as New York City mayor. The NYC Token launch came less than two weeks after Adams departed from his mayoral position.

Crypto analysts continue to examine the token’s on-chain activity and trading patterns for additional evidence of manipulation or fraud.

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