Eric Adams Faces Fraud Allegations After $3.4M NYC Token Rug Pull
Former New York City Mayor Eric Adams finds himself at the center of controversy in the cryptocurrency community following the launch of a memecoin known as NYC Token. The project, which Adams promoted personally, saw an explosive initial response from traders, pushing its total market value to impressive heights in a short time. However, the excitement turned to concern when on-chain data indicated significant liquidity movements that led to a rapid price decline.
Adams, often referred to as the Bitcoin mayor during his time in office, has long been a vocal supporter of digital assets. He repeatedly expressed his vision of transforming New York into the leading center for cryptocurrency innovation worldwide. This included notable actions such as converting his paychecks into Bitcoin through a major exchange platform.
The NYC Token debuted with fanfare at a press event held in Times Square earlier this week. Adams positioned the token as a initiative connected to important social efforts, particularly funding programs through a nonprofit to address rising anti-Semitism and "anti-Americanism." The market responded enthusiastically, driving the total market value to approximately $580 million soon after the token became available.
On Chain Activity Sparks Community Concern
Analytics tracked by savvy investors revealed that a wallet tied to the token's deployer executed large withdrawals of USDC liquidity close to the market peak. Estimates from online sources placed the removed amount around $3.4 million. These transactions coincided with a steep drop in the token's value, making it difficult for many holders to sell their positions without substantial losses.
Social media discussions quickly focused on the possibility of a rug pull, a common risk in the memecoin space where liquidity can be suddenly removed ahead of retain investors. Several users shared screenshots and data pointing to the deployer wallet's actions, with one widely circulated post accusing direct involvement in draining funds.
The token's official website BuyNYCToken.com outlines a total supply of one billion coins, allocating 70% to a reserve that does not count toward circulating supply. Adams mentioned plans to direct generated funds toward combating antisemitism and anti-American sentiments globally. Yet, he offered few details on the identities of any co-founders or the precise mechanisms for handling and distributing those funds.
During a television appearance with Fox Business anchor Maria Bartiromo, Adams discussed the token's potential applications. He compared blockchain transparency to systems used by large retailers like Walmart for tracking goods and food supplies. In the same conversation, he occasionally described the technology as "block change technology," which stood out as very odd, for someone who is promoting blockchain and cryptocurrency tokens, to not even know that it's "blockchain" and not "block change."
The swift rise and fall of NYC Token have highlighted ongoing debates about transparency in celebrity-backed cryptocurrency projects. Retail participants entered positions based on the initial hype and Adams' public endorsement across his social channels. As questions persist about the liquidity events and overall structure, the event serves as a reminder of the volatility inherent in memecoin markets.