NYC Token Plummets Amid Rug Pull Allegations Against Eric Adams

The launch of the NYC Token was marked by bold promises from its most prominent backer, former Mayor Eric Adams. In promotional material, Adams declared the project was “about to change the game” and “take off like crazy.” Initially, the market seemed to agree, propelling the token to a peak market valuation of $580 million. The official website outlined a total supply of one billion tokens and stated that 10% of profits would be allocated to the team, though it did not disclose the identities of those team members.

However, the excitement was short-lived. The token’s value crashed by over 60%, erasing hundreds of millions in market capitalization and leaving it valued at around $133 million. The steep decline triggered immediate scrutiny, with blockchain analysis platform Bubblemaps flagging potentially concerning activity. Their investigation pointed to a critical event: at the token’s peak, a wallet associated with the NYC Token’s deployer withdrew approximately $2.5 million in liquidity from the trading pool.

While about $1.5 million was reportedly returned after the price collapse, roughly $900,000 remains unaccounted for. This sequence—a large, timed withdrawal by an insider followed by a catastrophic price drop—is a classic red flag in the cryptocurrency space, leading users on platform X to directly accuse Adams of orchestrating a rug pull, a scheme where developers abandon a project and cash out investors’ funds.

The structure of the NYC Token’s launch itself raised eyebrows among analysts. Typically, cryptocurrency developers create a liquidity pool using established assets like Circle’s USDC or Solana’s SOL alongside the new token. The NYC Token deviated from this norm by establishing a one-sided liquidity pool comprised solely of the token itself. As analyst Vaiman noted, this tactic can be more subtle than direct token sell-offs. Users purchasing the token injected USDC into the pool, which was then followed by the significant $2.5 million withdrawal.

In response to the mounting criticism, the NYC Token team acknowledged the liquidity withdrawal but framed it as a necessary adjustment. “Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity,” they stated, adding, “We’re in it for the long haul!” This explanation did little to quell concerns, especially as a new account linked to the project later announced that additional funds had been injected back into the pool, suggesting reactive damage control.

The project’s backdrop adds another layer of opacity. The token is associated with an entity named C18 Digital. Corporate records from Delaware show that C18 Digital was incorporated on December 30, 2025—just days before the NYC Token’s launch. This recent formation, combined with the undisclosed team, contradicts the transparency often demanded by the crypto community and investors.

The allegations present a stark contrast to the philanthropic and educational vision painted by Eric Adams. At a Monday event, the former mayor, a known cryptocurrency proponent, stated that proceeds from the token would be directed toward nonprofits focused on combating antisemitism and what he termed “anti-Americanism.” He further expressed an intention to use the funds to “teach our children about embracing blockchain technology.”

These stated goals now risk being overshadowed by the controversy surrounding the token’s liquidity management and the substantial, unexplained withdrawal. The incident highlights the persistent risks in the cryptocurrency sector, where charismatic endorsement and social media hype can quickly drive valuations, but where technical execution, transparent governance, and ethical fund management ultimately determine legitimacy. For the NYC Token and its backers, the path to restoring credibility appears steep, requiring full transparency around the $900,000 and the roles of C18 Digital and the anonymous development team.