Eric Adams’ NYC Token Tanks 81% Amid Former Mayor Controversy

NYC Token plunged 81% shortly after launch, sparking accusations of a rug pull against former New York City Mayor Eric Adams.

Adams, who openly supported cryptocurrency for years and even accepted his first mayoral salary in Bitcoin (BTC), is now being accused by the cryptocurrency community that his recently introduced NYC token was nothing more than a rug pull.

For a politician who was once hailed as a pro-crypto champion, the incident represents a dramatic turnabout. It adds to the mounting scrutiny that has followed him outside of City Hall.

NYC Token Plunges 81% After Hype-Fueled Launch

On January 12, Adams introduced the “NYC Token,” promoting it as a cryptocurrency-driven project to support social initiatives without increasing taxes.

Adams stated in several posts that the token will contribute to the fight against anti-Americanism and antisemitism. The former mayor also wanted to use the coin to fund awareness campaigns and scholarships, as well as to further blockchain education.

With the project's proceeds designated for NGOs, such as advocacy groups, HBCUs, and blockchain literacy programs targeting marginalized populations, he presented it as part of his post-mayoral campaign to establish New York City as a global crypto hub.

Initially, the launch garnered considerable attention. Within minutes of going live, the market value of the NYC coin soared to around $600 million, thanks to Adams' social media advertising and public visibility.

But the surge fell apart just as fast. About 30 minutes after its debut, the token's value plummeted by about 81%, wiping out approximately $500 million in paper value and dropping to around $100 million in market capitalization.

The crypto community immediately reacted negatively to the abrupt reversal. The occurrence was referred to by many as a typical “rug pull”—a situation in which insiders deplete liquidity, leaving retail buyers with significant losses.

Analysis reveals that shortly after the high, a wallet connected to the token's deployer withdrew over $2.43 million in USDC liquidity. After some time, approximately $1.5 million was returned, leaving about $932,000 unaccounted for.

According to other estimates, the total amount of liquidity extracted was significantly greater—roughly $3.43 million. Adams or related wallets may have used a dynamic liquidity market maker (DLMM) arrangement to earn over $2.5 million in fees.

Adams' Legal Troubles and the Political “NYC” Token Hype

Beyond cryptocurrency, Adams' term was marred by significant legal issues. He was the first mayor of New York City to be charged with federal charges in September 2024. The allegations included bribery, wire fraud, conspiracy to defraud the United States, and soliciting foreign campaign contributions.

Over the past five years, cryptocurrency has grown in importance as a political talking issue. To attract an increasing number of voters, candidates from all walks of life are pledging pro-crypto legislation.

However, those assurances have frequently been broken, which has strengthened the argument that cryptocurrency is often used more as a political ploy than as a genuine policy concern.