The NYC Token Crash: Allegations Of Rug Pull After $2.5 Million Liquidity Withdrawal
Former New York City Mayor Eric Adams is dealing with vital backlash after the crash of his newly launched cryptocurrency, the NYC Token, shortly after its debut on Monday. The token initially soared to a market cap of $580 million however has since fallen sharply to roughly $133 million.
Eric Adams Under Fire
In a promotional video, Adams declared, “We’re about to vary the sport. This factor is about to take off like loopy.” However, the thrill was short-lived as proof surfaced suggesting that the steep decline in worth resulted from a major sell-off involving a person related to the NYC Token’s improvement workforce.
Blockchain evaluation platform Bubblemaps flagged probably regarding exercise linked to the NYC Token. Notably, a pockets related to the token’s deployer withdrew round $2.5 million in liquidity when the token peaked.
Although about $1.5 million was returned after the token’s worth dropped by 60%, roughly $900,000 stays unreturned. This has led customers on social media platform X (previously Twitter) to accuse Adams of orchestrating a crypto rug pull.
Adams, who has been an outspoken proponent of cryptocurrency, stated throughout a Monday occasion that a number of the funds generated by the NYC Token can be directed in the direction of nonprofits centered on combating antisemitism and “anti-Americanism.” Additionally, he expressed intentions to make use of the proceeds to “train our youngsters about embracing blockchain expertise.”
The NYC Token’s official web site states there’s a total supply of 1 billion tokens in circulation, and particulars reveal that 10 p.c of income are allotted to the workforce’s actions, although the identities of these concerned weren’t disclosed.
NYC Token Team Responds
In response to criticism, the NYC Token workforce acknowledged the liquidity withdrawal, stating, “Given the overwhelming assist and demand for the token at launch, our companions needed to rebalance the liquidity.” They added, “We’re in it for the lengthy haul!”
However, there stays uncertainty in regards to the particulars surrounding the token’s launch, with a not too long ago listed entity, C18 Digital, related to the challenge. Delaware company information present that C18 Digital was integrated on December 30, 2025.
Typically, when a cryptocurrency launches, builders create a liquidity pool utilizing numerous belongings, akin to Circle’s USDC or Solana (SOL), to permit customers to purchase and promote the brand new token. The NYC Token took a special method by establishing a one-sided liquidity pool comprised solely of the token itself.
As customers started buying the token, they injected liquidity into the pool utilizing USDC, which was adopted by the numerous withdrawal of $2.5 million. This tactic, described by analyst Vaiman, will be extra delicate than direct token sell-offs.
Following the viral studies of the alleged rug pull, a brand new account related to the NYC Token introduced that further funds had been injected into the liquidity pool.
Featured picture from CNN, chart from TradingView.com