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Former New York City mayor Eric Adams launched a cryptocurrency token on Monday that crashed more than 80% within minutes, wiping out nearly $500 million in market value as traders accused the project of being a rug pull.
NYC Token briefly hit a $580 million market cap following its debut before collapsing amid reports that liquidity had been drained from the project. On-chain analysts claimed at least $3.4 million was withdrawn shortly after trading began.
On-chain analyst Rune Crypto posted on X that the former mayor “has just removed liquidity of his new memecoin, $NYC, scamming investors for over $2,536,301.”
Another crypto user, StarPlatinum, flagged that the token is “extremely centralized and high risk,” noting that the top 10 holders control 98.73% of all tokens. According to the analysis, 70% of the memecoin supply is controlled by a single wallet.
Adams, who previously styled himself as New York’s “Bitcoin Mayor,” promoted the memecoin with the tagline “the digital heartbeat of New York City” in an announcement video filmed from the back of a taxi cab.
“We’re about to change the game. If you can’t make it to New York, we’re going to bring New York to you,” Adams said in the video. “This thing is about to take off like crazy.”
Addressing reporters in Times Square on Monday, Adams said the token uses “up-to-date technology” to address what he called rapidly growing “antisemitism and anti-Americanism.” He added that the project would teach children how to embrace blockchain technology.
“I’m not taking a salary at this time,” Adams told reporters, though he noted that a decision to pay him could be considered later.
Adams, 65, declined to seek reelection and stepped down as mayor, citing financial struggles. Zohran Mamdani took over the mayoral seat on January 1, with an official swearing-in ceremony at City Hall.
During his tenure, Adams established what he called the “nation’s first-ever” municipal office for crypto and blockchain to promote “responsible innovation.”
The NYC Token official website states there will be one billion tokens in circulation. “NYC Token is a next-generation cryptocurrency inspired by the relentless energy and innovation of New York City,” according to the project description.
Adams faced five federal charges linked to a historic corruption case last year. The case was dismissed with prejudice following a request from the US Department of Justice.
