Key Takeaways
- Former NYC Mayor Eric Adams denies claims of profiting from NYC Token’s market volatility.
- Adams’ involvement in the token initiative is aimed at promoting blockchain education, combating hate, and supporting civic projects, not personal enrichment, according to his spokesperson.
Ex-New York City Mayor Eric Adams has pushed back rug pull accusations in connection to the launch of the NYC Token, a digital asset has has publicly supported.
In a statement released Wednesday, spokesperson Todd Shapiro said Adams never dipped into investor funds, calling the allegations “false and unsupported by any evidence.”
According to Shapiro, Adams’ role in the token was openly disclosed and driven by a mission to promote blockchain education, counter antisemitism and anti-Americanism, and back nonprofit initiatives.
The NYC Token’s market capitalization topped $220 million at launch but quickly fell more than 80% to roughly $40 million, per GeckoTerminal. The spokesperson said the sharp swings reflect volatility common among newly launched digital assets.
Blockchain analytics platforms, including Bubblemaps, flagged suspicious activity where a digital wallet allegedly removed $2.5 million in liquidity at the peak before returning roughly $1.5 million after the crash. These patterns led observers to speculate about a rug pull scam.
Bubblemaps said roughly 4,300 traders participated in the NYC token launch, with about 60% ultimately losing money.
Even potential insiders weren’t spared from the NYC Token collapse. One suspicious wallet bought in minutes before launch but ended up losing nearly $500,000.
Source: https://cryptobriefing.com/eric-adams-denies-profiting-nyc-token-turbulence/
