Memcoin from former New York City mayor crashes hours after launch

Key points:

• Eric Adams-backed memecoin NYC Token surged in price after launch, but soon suffered a massive liquidity outflow.
• On-chain data showed withdrawals from a wallet associated with the project's creation, raising suspicions of a rug pull.

Former New York City mayor Eric Adams faced a barrage of criticism from the crypto community after the launch of a memecoin he actively promoted. Almost immediately after the token's release, participants noticed a sharp drop in liquidity, sparking suspicion and discontent among traders.

Source: X.com

Adams has long been associated with the crypto industry. During his time as mayor, he regularly spoke of his intention to make New York City a global hub for digital assets. He also publicly stated that he received part of his salary in Bitcoin through Coinbase, earning him the nickname "Bitcoin Mayor" in the community.

What Went Wrong with NYC Token

On Monday, Adams unveiled a new project, NYC Token, at a press conference in Times Square. He stated that the token would be linked to community initiatives. Immediately after its launch, the coin's market cap quickly grew to approximately $580 million, indicating strong interest from retail investors.

However, within hours, on-chain data showed significant liquidity movements. According to analysts at Bubblemaps, a wallet associated with the token's creator withdrew approximately $2.5 million in USDC at the peak. Approximately $1.5 million was later returned, but this occurred after the token had fallen more than 60%. The remaining approximately $900,000, according to blockchain data, were never returned.

Source: X.com

These actions sparked speculation about a possible rug pull — a scenario in which the project's creators withdraw liquidity, leaving investors with losses.

According to the project's website, the total supply of NYC Token is 1 billion coins. The majority of these — approximately 70% — is placed in reserve and is not circulating in the market.

Adams claims that proceeds from the token are planned to be used to fund initiatives against anti-Semitism and so-called anti-Americanism through a non-profit organization. However, specific details — including the names of partners and the distribution mechanism — were not disclosed.

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During an interview on Fox News, the former mayor gave evasive answers to questions about the token's purpose and blockchain technology, allowing for inaccuracies and confusing terminology. Further confusion was caused by some audience members confusing NYC Token with another project, New York City Coin. The latter was launched earlier by a third-party team and disappeared from major exchanges in 2023 due to weak trading activity, having no direct connection to the new Adams token.