The NYC Token Crash: Allegations Of Rug Pull After | Crypto News
Former New York City Mayor Eric Adams is dealing with vital backlash after the crash of his newly launched cryptocurrency, the NYC Token, shortly after its debut on Monday. The token initially soared to a market cap of $580 million but has since fallen sharply to roughly $133 million.
Eric Adams Under Fire
In a promotional video, Adams declared, “We’re about to change the game. This thing is about to take off like crazy.” However, the thrill was short-lived as evidence surfaced suggesting that the steep decline in worth resulted from a vital sell-off involving a consumer related to the NYC Token’s development group.
Blockchain analysis platform Bubblemaps flagged doubtlessly regarding exercise linked to the NYC Token. Notably, a pockets related with the token’s deployer withdrew around $2.5 million in liquidity when the token peaked.
Although about $1.5 million was returned after the token’s worth dropped by 60%, roughly $900,000 stays unreturned. This has led customers on social media platform X (previously Twitter) to accuse Adams of orchestrating a crypto rug pull.
Adams, who has been an outspoken proponent of cryptocurrency, acknowledged during a Monday event that some of the funds generated by the NYC Token can be directed in direction of nonprofits centered on combating antisemitism and “anti-Americanism.” Additionally, he expressed intentions to use the proceeds to “train our youngsters about embracing blockchain technology.”
The NYC Token’s official web site states there may be a whole provide of one billion tokens in circulation, and particulars reveal that 10 p.c of income are allotted to the group’s actions, though the identities of those concerned weren’t disclosed.
NYC Token Team Responds
In response to criticism, the NYC Token group acknowledged the liquidity withdrawal, stating, “Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity.” They added, “We’re in it for the long haul!”
However, there stays uncertainty about the small print surrounding the token’s launch, with a just lately listed entity, C18 Digital, related with the project. Delaware company data show that C18 Digital was integrated on December 30, 2025.
Typically, when a cryptocurrency launches, builders create a liquidity pool utilizing numerous property, such as Circle’s USDC or Solana (SOL), to enable customers to buy and promote the new token. The NYC Token took a different method by establishing a one-sided liquidity pool comprised solely of the token itself.
As customers started buying the token, they injected liquidity into the pool utilizing USDC, which was adopted by the numerous withdrawal of $2.5 million. This tactic, described by analyst Vaiman, may be more delicate than direct token sell-offs.
Following the viral experiences of the alleged rug pull, a new account related with the NYC Token announced that further funds had been injected into the liquidity pool.
Featured image from GWN, chart from TradingView.com
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