Former New York City Mayor's token issuance accused of Rug Pull, team previously withdrew liquidity at a high level

BlockBeats News, January 14 — Former New York City Mayor Eric Adams has faced widespread criticism after the newly launched cryptocurrency NYC Token plummeted within hours of going live. Data shows that the market cap of NYC Token surged to approximately $580 million before rapidly dropping to around $130 million.

The blockchain analytics platform Bubblemaps pointed out that there was “suspicious activity” involving the token: wallets associated with the project deployer withdrew about $2.5 million in liquidity at the high price point. After the token price fell by approximately 60%, the address re-injected about $1.5 million, but roughly $900,000 has not been recovered.

On social platform X, many users accused Adams of “rug pull,” meaning withdrawing funds after promoting the project for profit. Adams has long publicly supported cryptocurrencies and stated at an event on Monday that part of the NYC Token funds would be used to combat anti-Semitism, anti-“anti-American” projects, and to promote blockchain education among youth.

The NYC Token official website shows a total supply of 1 billion tokens, with the project team set to receive a 10% profit share, but Adams has not disclosed the specific team members. Currently, there has been no official investigation conclusion regarding the allegations.