Former New York Mayor Eric Adams, following previous political and business scandals, has now come under fire for the dramatically rapid collapse of his recently launched cryptocurrency, NYC Token. Memcoin’s market value jumped to $580 million (HUF 192 billion) shortly after its debut, but fell below $100 million (HUF 33.1 billion) in no time. The politician with a reputation for being crypto-friendly almost immediately with the sudden withdrawal of token liquidity, or pulling carpetwas already accused by the crypto community. There is still no sign of $900,000 (HUF298 million) in liquidity.
What is NYC Token?
Eric Adams launched NYC Token on January 12 as a crypto initiative to support social causes. The former mayor of New York made the sign’s purpose to combat the spread of anti-Semitism and hatred of America. The token’s official website promises to support awareness campaigns, educational programs and community initiatives, as well as partnerships with community organizations and educational institutions focused on teaching Jewish history and culture and standing up to all forms of hate.
A in an announcement video However, Adams did not elaborate on how he will use the token to accomplish all this. Even though the token’s website talks about a total supply of 1 billion, it doesn’t reveal anything about the people behind the project. All this alone was enough for critics to question the seriousness of the project.
The carpet pulling can take place in the background
Rug pull is one of the most common types of fraud in the crypto world. The point is that the initiator of the project suddenly withdraws liquidity, that is, pulls the rug from under the investors, practically losing their money. This could also have happened to the NYC Token, as its liquidity was drained minutes after its launch: one of the wallets associated with the token’s creation suddenly withdrew $2.5 million (HUF 827.5 million) of liquidity from the project at the same time it rose to the top, practically collapsing the NYC Token.
NYC Token After Liquidity Withdrawal | TradingView.com
The token’s team acknowledged the controversial withdrawal of liquidity, but firmly denied the accusations, saying that the reorganization was necessary for technical reasons due to high interest rates. Although part of the withdrawn amount – approximately $1.5 billion (HUF 496.5 million) – was returned, almost a million dollars was lost, which is why many see it as a pre-planned crypto withdrawal.
This isn’t Adams’ first crypto initiative: he was previously an outspoken supporter of NYC Coin as part of the CityCoin project, promising that a portion of token sales would go to New York City. Later, Miami Mayor Francis Suarez launched a similar token with MiamiCoin, but both disappeared from exchanges in 2023.
In addition to crypto projects, this is also not the first in terms of scandals: the former mayor of New York was previously accused of bribery and campaign finance violations. The case was ultimately dropped by the Trump administration after the Justice Department sent a memorandum to the U.S. Attorney’s Office for the Southern District of New York stating that
they have unnecessarily limited Mayor Adams’ ability to devote his full attention to combating illegal immigration and violent crime.
Summary
The case is another example of the fact that the price of cryptocurrencies can fluctuate on an extremely large scale – the project’s website itself warns about this. However, the token’s liquidity was unusually replenished first; at first, several wallets were trading suspiciously large amounts, and then liquidity was suddenly depleted, which is certainly a cause for concern. The NYC Token team denies any premeditated activity and Adams has not yet publicly commented on the incident.
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