Eric Adams Rejects “Rug Pull” Claims Tied to NYC Token Despite Big Losses

Former New York City Mayor Eric Adams has rejected allegations that his newly launched meme coin, NYC Token, was linked to suspicious liquidity withdrawals that left buyers going through heavy losses.

In a statement posted Tuesday to Adams’ X account, spokesperson Todd Shapiro stated studies suggesting Adams moved cash out of the NYC Token have been “false and unsupported by any proof.”

The assertion added that Adams neither touched investor funds nor profited from the token’s launch, insisting that “no funds have been faraway from the NYC Token.”

NYC Token Team Blames Early Volatility for Post-Launch Price Drop

Shapiro characterised the token’s sharp worth swings as a well-recognized function of early-stage crypto initiatives.

“Like many newly launched digital belongings, the NYC Token skilled market volatility,” he stated, framing the turbulence as a market-driven occasion slightly than a coordinated withdrawal.

The response adopted heightened scrutiny of onchain activity surrounding NYC Token, which suffered a steep drawdown shortly after launch.

The mission itself acknowledged liquidity changes, saying it had to “rebalance” amid sturdy demand.

In a submit on X, the group stated its companions quickly eliminated funds for time-weighted common worth execution and later added further capital again into the liquidity pool.

Those explanations have executed little to calm critics. Independent analysts flagged transactions that appeared to drain liquidity close to peak costs, triggering considerations amongst merchants.

One of the earliest warnings got here from Rune Crypto, which alleged that roughly $3.4 million in liquidity was withdrawn shortly after launch and accused the mission of working like a rug pull.

Onchain visualization platform Bubblemaps additionally highlighted uncommon patterns.

According to its evaluation, a pockets related to the token deployer eliminated round $2.5 million in USDC close to the market high and later added again roughly $1.5 million after the token’s worth had fallen greater than 60%.

Bubblemaps: 60% of NYC Token Traders Lost Money After Launch

Bubblemaps additional detailed the scope of dealer losses. Of roughly 4,300 individuals, an estimated 60% ended the token’s first hours within the purple.

Most losses have been beneath $1,000, however about 200 merchants misplaced between $1,000 and $10,000. A smaller group suffered losses within the tens of hundreds, whereas not less than fifteen merchants misplaced greater than $100,000.

Adams’ camp has emphasised that the NYC Token was pitched as a automobile to assist nonprofit initiatives and group training, not as a speculative funding.

Still, the episode has fueled transparency considerations, notably round governance and liquidity administration.

The mission’s web site states that the token is deployed on Solana with a complete provide of 1 billion tokens, 70% of that are allotted to a reserve excluded from circulating provide.

While the group has cited unnamed companions in its liquidity actions, it has but to publish an in depth breakdown, leaving questions on oversight and accountability unresolved.

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