Former New York Mayor's Token Accused of Rug Pull, Team Previously Withdrew Liquidity at High Levels

BlockBeats News, January 14, former New York City Mayor Eric Adams has faced widespread scrutiny after the newly launched cryptocurrency NYC Token plummeted within hours of its debut. Data shows that NYC Token's market cap once surged to about $580 million, then quickly dropped to around $130 million.

Blockchain analytics platform Bubblemaps pointed out that there was "suspicious activity" with the token: a wallet associated with the project deployer withdrew about $2.5 million in liquidity at the price peak. After the token price dropped by about 60%, the address reinjected about $1.5 million, but approximately $900,000 has not been returned.

Many users on the social platform X accused Adams of a "rug pull," meaning he allegedly promoted the project and then withdrew funds for profit. Adams has long been a public supporter of cryptocurrency and stated at an event on Monday that part of the NYC Token funds would be used for anti-antisemitism, anti-"anti-American" projects, and to promote blockchain education among youth.

The NYC Token official website shows that the total supply is 1 billion tokens, with the project team receiving a 10% profit share, but Adams has not disclosed the specific team members. There is currently no official investigation conclusion regarding the related allegations.